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 failed to sustain its intraday rally on Wednesday, GBP gave back almost all of that gain against the USD to close marginally higher and print a shooting star candle pattern.
This development leaves the risk of a reversal lower, possibly toward the Dec. 20 low of 1.5496. Below here will call for a run at the 1.5410 level with a breach turning focus to the Oct. 6 low of 1.5270. Further down, support lies at its psycho level at 1.5000.
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Alternatively, the pair will have to break and hold above the 1.5779 level to prevent a resumption of its medium-term weakness. This will trigger further upside toward the Nov. 18 high of 1.5885 and then the Oct. 31 high of 1.6161.
On the whole, GBP continues to face corrective recovery risk.
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.