GBP-USD Keeps Short-Term Bias Higher

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( fxtechstrategy.com) - GBP reversed its intraday losses to close marginally higher on Thursday and is following through higher in early trading today. Risk is building toward the 1.5850 and 1.5863 levels, its Sept. 15 and Oct. 14 highs. Its continued hold above the 1.5713 to 1.5687 zone supports this view.

A break of the 1.5850 to 1.5863 zone will resume its upside strength toward its Sept 08'2011 high of 1.6079, followed by the 1.6204 level, its Sept. 6 high.

Follow TheStreet on Twitter and become a fan on Facebook.

On the downside, the pair will have to break and hold below the 1.5713 to 1.5687 range to put its short-term corrective recovery at risk. This will bring deeper bear threats toward its Oct. 12 low of 1.5541. Further down, support comes in at the 1.5270 level and next the July 18 low of 1.5122 level.

On the whole, GBP may have halted its short-term corrective recovery and is now consolidating but remains biased to the up above the 1.5713 to 1.5687 levels.

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.