GBP-USD: Remains Above Rising Trend Line

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (fxtechstrategy.com) -- The pound-dollar currency pair may be hesitating and threatened by the bears, but it continues to trade and hold above its trend-line support (at 1.5803).

As long as GBP-USD holds above this line, it's likely to rise and return to its key resistance at 1.6059.

A breach of that level will cause the pound-dollar currency pair to resume its medium-term uptrend and target 1.6091, its Nov. 11 high.

A break of that level will turn the focus to the pair's Oct. 31 high at 1.6161.

The alternative scenario will be a break and hold below the mentioned trend line.

This will turn the focus to the 1.5772 level, GBP-USD's March 22 low, where a breach will aim at the 1.5601 level.

This zone may hold on retests but if it is violated, GBP-USD is likely to head lower, toward 1.5497, its Jan. 10 high.

On the whole, the pound-dollar currency pair continues to hold on to its broader medium-term uptrend but faces price hesitation.

-- Written by Mohammed Isah.



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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.