By Mohammed Isah of fxtechstrategy.com
: As highlighted in our Wednesday analysis, while the pound-dollar currency pair (GBP-USD) holds below the 1.5701 level, its Aug. 16 high, it continues to face bear threats in the near term.
In such a case, the 1.5295 level, its Sept. 7 low, comes in as the next downside target.
On a turn below there, the pair should target 1.5122, its July 21 low. A break of that level will leave it facing further downside pressure toward 1.5000.
Alternatively, to reverse this view, a return above the 1.5470 level must be established to create scope for more strength toward 1.5701, the pair's Aug. 16 high.
Beyond the latter, the pair will eye the 1.5996 level, its Aug. 8 high, and then the 1.6274 level, its Jan. 24 high.
Overall, the pound remains biased to the downside vs. the dollar in the near term despite its present bid tone.
--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.