Technical Summary: GBP Targets 1.6692

The pound could be poised to break its short-term downtrend against the dollar. Plus, a look at other major currency pairs.
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GBP-USD

came off an intraday low of 1.6516 during the U.S. session to close higher at 1.6610 on Friday. The pair is now seen holding slightly above the 1.6602 level, with risk seen toward 1.6692. A convincing break and close above those key levels is required to relieve the pair of its short-term downtrend pressure.

Although

EUR-USD

is now holding above the 1.4844 level, its inability to hold on to its intraday gains should be viewed with caution. A follow-through higher (on this week's gains) must occur for the pair to consolidate its hold above the 1.4844 level and make further moves higher. The next resistance level lies at 1.4927.

The outlook for

USD-JPY

is lower. The pair declined sharply lower on Friday, wiping out almost all of the week's gains. Continued upside price rejection and a hold within its falling channel are suggestive of downside weakness. The next support comes at the 89.16 level.

The

AUD-USD

outlook continues to improve after the pair closed strongly higher on Friday. This suggests a move higher toward 0.9275 and eventually 0.9327.

EUR-JPY

closed lower on Friday after the pair failed to follow through higher on the previous day's strength and declined to a low of 133.20. Threats are now seen toward 132.49.

USD-CAD

: A second day of a follow-through higher following three days of weakness saw the pair closing at 1.0751, reducing its losses for the week. If the pair can build on that strength in the coming week, it should put pressure on the 1.0851 level.

EUR-GBP

: The nearer-term outlook remains lower with another negative close seen on Friday, leaving the pair vulnerable to the downside toward the 0.8911 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 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.