By Mohammed Isah of fxtechstrategy.com
: Loss of bullish short-term momentum turned the pound-dollar currency pair lower this week and opened the door for further corrective weakness as we prepare to enter the new week.
Further weakness should target the 1.5521/1.5470 levels, with a break of those levels targeting the pound-dollar's violated trend line at 1.5107. The latter level is expected to hold and provide support, thus turning the pair higher again.
On recovery, the pound-dollar pair should push back higher toward its big psychological level at 1.6000, with a cut through there allowing for further strength toward the 1.6274 level, its Jan. 24 high, and possibly higher.
Overall, bear pressure has the pound-dollar currency pair continuing to target lower prices.
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.