By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The pound-dollar currency pair (GBP-USD) failed at 1.5894 and closed marginally lower on Tuesday, and price hesitation continues to be seen Wednesday.
Nevertheless, as long as the pair's broken range top at the 1.5713 level holds as support, we expect the pound-dollar pair to retarget the 1.5894 level.
A decisive break above there will clear the way for a run at the 1.5996 level, the pair's Aug. 8 high, with a penetration of that level causing the pair to resume its short-term uptrend toward 1.6274 level, the Jan. 24 high.
Conversely, support starts at the 1.5502 level, where a violation will allow for further downside pressure toward the 1.5295 level, the Sept. 7 low. A break of that level will expose the 1.5122 level, the July 21 low, and then the 1.5000 psychological level.
Despite its current consolidation, the pound-dollar currency pair looks to eventually recapture the 1.5996 level.
--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.