By Mohammed Isah of fxtechstrategy.com
NEW YORK (
: Although the pound-dollar currency pair held above 1.5470 following a brief halt of its weakness from 1.5996, it remains vulnerable to more losses in the near term.
The pair likely will back below 1.5470 and then target 1.5371, its 200-day exponential moving average. A loss at the latter level would leave it targeting even lower prices.
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In order to break out of this downward bias, the pound-dollar must violate 1.5996, its Aug. 8 high. That would create scope for additional recovery toward 1.6274, the Jan. 24 high, and then 1.6466, the January 2010 high.
Overall, further losses for the pound vs. the dollar are likely.
--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.