By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The outlook for the pound-dollar currency pair remains bullish as it put in another higher weekly close Friday.
The pound-dollar pair is now likely to move toward its big psychological level at 1.6000.
Although that level may provide strong resistance on an initial test, it should eventually give way and open the door for further gains toward 1.6274, the Jan. 24 high, and possibly higher.
The weekly relative strength index (RSI) is bullish and pointing higher, supporting this view.
On pullbacks, the pair should target 1.5814. A breach of that level would leave the pair to target 1.5521/1.5470 and then the violated trend line at 1.5226. This level is expected to hold and provide support, turning the pair higher again.
Overall, with bull pressure triggered from the 1.4226 level intact, further upside is likely toward 1.6000 and beyond.
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.