GBP-USD: Building on Its Recovery

GBP-USD: The pair continues to build on its recovery activated from its March 25, 2010 low at 1.4796, following through higher today and eyeing a recapture of its March 23, 2010 high at 1.5110.

An eventual break of that level will drive GBP further higher toward the 1.5343/80 levels, its Feb. 19, 2010 low/March 17, 2010 high, with a turn above there resuming its corrective recovery toward the 1.5574 level, its Feb. 23, 2010 high.

We will be watching how things pan out at the 1.5110 level, as that level is key to further upside incursions. Its daily RSI has turned higher, suggesting further strength. Alternatively, below its 2010 low, at the 1.4782 level, will have to be traded to invalidate its current consolidation to corrective bias and turn focus to the 1.4511 level, its April 26, 2010 low, followed by its April 2009 low at 1.4396. In a nutshell, the pair continues to retain its consolidation to corrective tone, with the immediate threat being a recapture of the 1.5110 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 The Professional Suite 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.

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