By Mohammed Isah of fxtechstrategy.com
: The pair sold off today, weakening for a third consecutive session and invalidating the 0.9000/02 and 0.8982 levels.
The latest declines have cleared the way for a run at the 0.8933 level, the pair's .50 Fibonacci retracement. A loss there would drive the cross pair lower toward 0.8866, the June 5 high.
In order for the pair to reverse its current weakness, it needs to move back above 0.9239. That would pave the way for further upside toward 0.9299, the pair's Sept. 27 high. A decisive penetration of that level would set the pair up for a move toward its Oct. 13 high of 0.9410. A recapture of that level would end the current correction and trigger the resumption of its short-term uptrend toward the March high at 0.9489.
On the whole, the euro-pound pair retains its near-term corrective bias and looks set to weaken further.
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 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.