By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- Although the pound-dollar (GBP-USD) currency pair wiped out its Thursday gains, it still closed higher at 1.4548 on Friday.
This sustains the pair's recovery that was initiated at the 1.4226 level, its 2010 low, and leaves upside risk toward 1.4768, the June 2 high, and 1.5000/1.5200, its psychological level/May 10 high. The latter zone should turn the pair lower again.
For the pair to reverse its corrective recovery bias and resume broader weakness toward its March 2009 low at 1.4112, it will need to decisively clear the 1.4257/26 levels.
All in all, the pound remains biased in the near term to the upside vs. the greenback, with risk seen toward the 1.4768 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.