EUR-GBP Stays Within Its Bull Channel

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) -- With EUR-GBP struggling to recover, the immediate risk continues to point higher.

The pair is trading in a rising channel, a bullish technical pattern, and as long as it holds within that channel chances are that it will return to its key resistance at 0.8504 level.

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This could open the door for a move further higher toward the Dec. 8 high at 0.8560. A breach there could expose the 0.8616 level. Its daily RSI is bullish and pointing higher.

Alternatively, the risk to our analysis will be a return to the 0.8312 level where a violation will set the stage for a push further lower toward the Jan. 16 low of 0.8263. A breach there will target its August 2010 low at 0.8141.

Further down, support comes in at its 2010 low at 0.8066 level. All in all, the cross continues to maintain its broader upside risk within its rising channel though facing bear threats.

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.