The Great Britain pound versus the US dollar currency pair seems to be under bearish pressure but could the bulls thrive in the attempt to rotate the price?
After the fall from the 1.3482 peak ended at the 1.2675 low, the price started an ascending movement that managed to conquer the 1.3261 and — later on — 1.3616 firm levels.
On both occasions, the bulls had to keep up with a bearish last stance, as the 1.3187 and 1.3566 lows, respectively, point out. Furthermore, the second bullish endeavor was initially limited by the double resistance area etched by 1.3619 and the upper line of the rising channel, but it was able to print an acceleration from the momentum perspective.
This led to the price testing the second double resistance, noted by the same ascending line and — this time — by the 1.3854 intermediary level. However, this resistance was not able to withstand, for the momentum — as aforementioned — was at its peak.
As a result, the price climbed until the high of 1.4239 — in the close vicinity of the 1.4258 resistance area. From there, the price ebbed until it touched the upper line of the ascending channel. If the bulls are able to find support here or at the 1.3854 intermediary level, then they may hope for 1.4122 as their first objective.
However, if the fall proves not to have ended, the price could breach 1.3854, which, if it becomes resistance, lays the ground for a fall to 1.3616.
From 1.3566 low, the price started to ascend, reaching the 1.4242 intermediary level. As the retracement that followed was unable to find support at 1.4149, the price dropped under the firm support area of 1.4049, stopping at the 1.3888 low.
Still, if the bulls manage to validate 1.3863 as support, they may conquer 1.3971, then 1.4049, followed by 1.4149. On the flip side, if 1.3863 cedes, the fall may continue until 1.3771.
Levels to keep an eye on:
D1: 1.3854 1.4122 1.3616
H4: 1.3971 1.4049 1.4149 1.3863 1.3771