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 (
) -- GBP-USD: With a loss of upside momentum on a shooting star candle seeing the pair following through sharply lower the past week, further weakness could be developing. In such a case, the 1.6255 level, its Aug. 15, 2011 low will be targeted followed by the 1.6110 level, its Aug. 11, 2011 low. Below there will create scope for more weakness toward the 1.6006 level and ultimately, the 1.5778 level, its July 2011 low.
Its daily RSI is bearish and pointing lower supporting this view. On the upside, GBP will have to break and hold above the 1.6614 level to halt its present bear threats. This if seen will bring further upside gains towards the 1.6743 level, its 2011 high and then the 1.6900 level, its psycho level. All in all, GBP remains biased to upside as it looks to return above the 1.6614 level.
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.