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 (
) -- GBP/USD: With a halt in its decline on Tuesday and a follow through higher in early trading today, further strength is now expected.
Note that the pair continues to trade within its range suggesting that its present attempt on the upside is not a full-fledged rally.
On further recovery, the 1.6138 level will be targeted with a loss of there turning focus to the 1.6265 level and then the 1.6397 level, its March 22, 2011 high.
Further resistance comes in at the 1.6455 level followed by the 1.6720 level and next the 1.6877 level, its Nov. 2009 high. On the downside, below the 1.5935 level will resume its weakness started from the 1.6397 level toward the 1.5819 level, its Jan. 19, 2011 low and possibly lower towards the 1.5700 level.
All in all, though retaining its broader bullish structure, GBP looks vulnerable within its sideways trading range.
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.