By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The GBP-USD, or pound-dollar, currency pair risks a retarget of its April 15 high at 1.5521 now that the pair recovered off the 1.5190 level to close the week higher at 1.5375.
As long as GBP-USD holds above its April 19 low at 1.5190 and its April 6 low at 1.5127, our upside view remains valid.
A violation of 1.5521 will call for further strength toward 1.5574, the GPD-USD's Feb. 23 high, and then 1.5814, its Feb. 17 high.
This view is in line with the GBP-USD's nearer-term uptrend triggered at the 1.4796 level.
On the other hand, immediate support rests at 1.5317, with a break there extending further weakness towards the April 19 low at 1.5190 and then the April 6 low at 1.5127. A breather should occur there and then turn the pair back up again.
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However, if that level fails, lower prices will shape up toward the March 25 low at 1.4796 and the 2010 low at 1.4782. This zone preserves GBP-USD's present consolidative-to-corrective price action. Therefore, a break will resume the pair's broader medium-term declines toward 1.4511, its April 26 low, and then 1.4396, its April 2009 low.
All in all, the pair looks set to retarget the 1.5521 level as long as it holds above the 1.5190 and 1.5127 levels.
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.