GBP-USD Susceptible, Facing Bear Threats

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-USD is vulnerable to the downside, but as long GBP holds and maintains above its key support at the 1.5642 level, medium-term trend resumption could occur.

However, the pair needs to break and hold above the 1.5924 level, its Feb. 8 high and the 1.5990 level to resume that uptrend. This will pave the way for a run at the 1.6074 level, its November high and possibly higher toward its Oct. 31 high at 1.6161.

On the downside, the risk to this analysis will be a return to the 1.5642 to 1.5653 levels, its Feb. 14 and 15 lows. This zone is expected to hold when tested.

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However, if violated, further lower prices will shape up towards the 1.5497 level, its Jan. 10 high. On the whole, though still maintaining its medium-term uptrend, GBP will have to break above the 1.5990 level to trigger that trend.

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.