GBP-USD Consolidates With Upside Bias

NEW YORK (TheStreet) - GBP-USD. Although GBP remains vulnerable to the downside following its decline started from the 1.6296 level, further upside is likely to occur as long as it holds above the 1.5344 level, its Dec. 28, 2010 low.

The pair's current price action suggests a bottom is forming. Resistance lies at the 1.5660 level, its Dec. 31, 2010 high, followed by the 1.5906 level, its Dec. 14, 2010 high. Beyond this level, the door will be open for more strength towards its Nov. 12, 2010 high at 1.6183. A move beyond that level would clear for a push to its Nov, 2010 high at 1.6298.

On the other hand, if it resumes its weakness off the 1.6296 level, a decisive violation of the 1.5344 level is needed. This will initiate more declines towards the 1.5100 level and subsequently the 1.5000 level.

All in all, although GBP is vulnerable to the downside, it continues to look for a temporary bottom while it holds above the 1.5324 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.

More from Currencies

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue Skid Toward $7,000 as DOJ Launches Investigation

Bitcoin Today: Prices Continue Skid Toward $7,000 as DOJ Launches Investigation

Bitcoin Today: Prices Plummet Below $8,000 in Market Downturn

Bitcoin Today: Prices Plummet Below $8,000 in Market Downturn

Bitcoin Today: Prices Slip as Broader Crypto Market Struggles to Make Traction

Bitcoin Today: Prices Slip as Broader Crypto Market Struggles to Make Traction

Bitcoin Today: Prices Attempt to Recover From One-Month Lows

Bitcoin Today: Prices Attempt to Recover From One-Month Lows