GBP-USD Keeps Risk to the Upside

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) -- We continue to retain our upside bias on GBP-USD while it trades and holds above its trendline support at 1.5803. As long as this continues to hold, GBP is likely to return to its key resistance at 1.6059 level.

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A break will resume its medium-term uptrend and then target the Nov. 11 high of 1.6091. A breach of here will turn focus to its Oct. 31 high at 1.6161.

The alternative scenario will be a break and hold below the trendline. This will turn focus to the March 22 low of 1.5772 where a breach will aim at the 1.5601 level. This zone may hold on retests but if violated, further lower prices will shape up toward the Jan. 10 high of 1.5497.

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

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.