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 (
) -- Having reversed its Monday losses in early trading today on a strong rally, the GBP-USD pair's Dec. 21 high of 1.5770 looks to be taken out.
That level is very significant to GBP's continued recovery, initiated from the 1.5235 level. An eventual clearance of there will set the stage for further upside price extension toward the Nov. 18 high of 1.5885. Above here will aim at the November high of 1.6074. Its daily RSI is bullish and pointing higher suggesting further strength.
On the downside, support lies at the 1.5666 level followed by the Jan. 10 high of 1.5497. Further down, support stands at the October low of 1.5270 and the January low of 1.5235.
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On the whole, GBP continues to correct higher suggesting further price extension toward the 1.5770 level.
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.