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 (
: We continue to maintain our bearish bias on GBP as it continues to face downside pressure despite its present attempt at recovery. Its Monday losses and the mentioned vulnerability leave the pair targeting the 1.6000 level, which may hold on an initial test, but if it snaps, the new target will be the 1.5935 level, its March 28, 2011.
The pair has been under pressure since losing upside momentum at the 1.6743 level in late April 2011. On the other hand, for the pair to reverse its bear threats, a break and hold above the 1.6516 level will have to be established.
That will open the door for more strength toward the 1.6743 level and then the 1.6877 level, its November 2009 high. A loss of the latter level will pave the way for further strength toward its bigger resistance at the 1.7039 level, its 2009 higher.
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.