By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- Continued price hesitation halted the euro-pound currency pair's (EUR-GBP) uptrend and saw it trading lower this past week.
The euro-pound currency pair continues to maintain its bullish tone set from the 0.8066 level. As long as the 0.8697/0.8625 levels hold as support, we expect the cross currency pair to trade back above the 0.8838 level and trigger further strength towards its .50 Fibonacci retracement (0.9802-0.8066 decline) at 0.8924 and then the 0.9000 psychological level.
Alternatively, initial support lies at the 0.8697 level, the euro-pound's Tuesday low, with a cut through there allowing for more declines toward the Oct. 5 high at 0.8625 and then the Sept. 22 high at 0.8576.
The latter level is expected to hold as strong support and turn the cross currency pair back up again. However, if it snaps, it will open the door for further downside towards the 0.8531 and 0.8466 levels.
All in all, with its short-term uptrend still valid, we expect further upside risk toward the 0.8838 level following the current 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
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.