By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The pound-dollar (GBP-USD) currency pair closed lower this week after failing to follow through higher on its marginal gains in the previous week.
The selling in the pound vs. the dollar wiped out almost half of the rally from the 1.5295 level, and the coming week may well bring more bearish price action.
We see two risks in the coming week, and they are the 1.5502 level and the 1.5295 level, the pair's Sept. 7 low. The latter level is expected to hold and turn the pair higher.
However, if GBP-USD climbs back above the 1.5713 level, then we can't rule out a return to the 1.5996/1.6016 and the 1.6105 levels.
Above that latter level, the pair will resume its medium-term uptrend toward its Jan. 24 high at 1.6274 and its Jan. 19 high at 1.6456.
Overall, the pound-dollar currency pair continues to hold on to its broader medium-term bullish structure despite its present price action.
--Written by Mohammed Isah.
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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.