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Technical Summary: Pound Rolls Over

The British currency collapses through key support vs. the dollar, while the euro closes lower after testing a high against the greenback.

GBP-USD

: The currency pair failed to sustain its corrective strength at 1.6692 and subsequently collapsed, declining sharply through key supports at the 1.6466 and 1.6411 levels on Friday. It is back into its falling channel and now risks further downside losses.

EUR-USD

tested a high of 1.5059 before backing off to close lower at 1.5009. With a weekly close above the 1.5000 level registered, threats remain to the upside, with eyes on the 1.5082 level.

USD-JPY

: The outlook remains higher in the near term, with the pair having reversed higher off the 88.00 level and sustaining that strength. With a positive close on Friday, the pair now eyes the 92.52 level.

EUR-JPY

retains its upside offensive triggered off the 128.98 level. It has strengthened for the fourth week in a row and has broken above its symmetrical triangle. It now looks to take a stab at the 138.71 level.

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While its counterpart (GBP-USD) was rolling over,

EUR-GBP

was strengthening, wiping out its entire losses for the week to close higher at 0.9199. That leaves upside risk toward the 0.9299 level.

AUD-USD

continues to print higher weekly prices, testing a high of 0.9327 though failing to move past that level late in the week. That level remains the next upside target if momentum picks up in the coming week.

USD-CAD

closed higher for the week, the first time it has done that since losing upside momentum at the 1.0991 level and hitting a low of 1.0204. The next resistance level lies at 1.0590.

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.