GBP/USD: The pair continues to trade within its range between its April 15 high of 1.5521 and the 1.5127/25 levels of April 6 and April 28.
As can be seen on the daily chart, GBP is presently weakening and now threatens an extension of that weakness towards its range low at the 1.5127/25 zone. This is coming on the back of its Friday weakness activated off the 1.5389 level.
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Despite this weakness, the pair still maintains its broader consolidation to corrective tone activated from the 1.4782 level. Furthermore, while the 1.5127/25 zone holds as support, we expect a retest of its range high at the 1.5521 level with a turn above there resuming its corrective recovery started from its 2010 low at 1.4782 and targeting the 1.5574 level, its Feb. 23 high and then the 1.5814 level, its Feb. 17 high.
Alternatively, a break of the 1.5127/25 zone will warn of a return to its March 25 low at 1.4796 and next its 2010 low at 1.4782 level. This zone preserves GBP's present broader consolidation to corrective price action. Therefore, a break will resume its medium-term declines towards the 1.4511 level, its April 26 low and then its April 9 low at 1.4396.
All in all, the pair remains trapped in its range (1.5521 and 1.5127/25) as it looks for a directional trigger.
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.