Bears Failing to Take 1.3854 on GBP/USD?

The Great Britain pound versus the US dollar currency pair seems to be determined to keep the gains. Will the bulls come to its aid?

Long-term perspective

After putting an end to the fall from 1.3482 at 1.2675, the bulls rotated the price and set the ground for an ascending trend.

As of writing, the highest point that the trend managed to define is the higher high of 1.4239.

The bulls overextended a little bit from the 1.3566, for the rally went too deep into a potential bearish territory, an event that quickly led to the expected outcome. As a result, just before the price was about to reach 1.4258 firm resistance, the bears kicked in, fueling a drop that failed — on the first attempt — to find support at 1.3854, as the 1.3778 low highlights.

After printing the 1.4005 high the bulls allowed a throwback that seeks to validate 1.3854 as support. If the bullish plan is matured, 1.4122 is the next target.

On the other hand, if 1.3854 fails, it then may become a resistance area, aiding the bears to take out the low of 1.3778. If this happens, then 1.3616 is the main bearish objective.

Short-term perspective

The confirmation of the 1.4242 intermediary level sparked a bearish movement that accomplished in sending the price back to the 1.3771 firm area.

The bulls rejected and, thus, ruined the bearish intentions to win 1.3771, securing the 1.3863 level instead.

The price consolidates under 1.3971 and above 1.3863, and if they succeed in starting a new push from the latter, then the bulls may produce a piercing of 1.3971, followed by a rally until 1.4049.

On the flips side, if 1.3863 gives way, then 1.3771 is to be paid a visit.

Levels to keep an eye on:


D1: 1.3854 1.4122 1.3616
H4: 1.3863 1.3971 1.4049 1.3771


© DorinRosu for Forex News, 2021. |
Permalink |
No comment |
Add to
del.icio.us

Post tags: Dollar, GBP/USD, United Kingdom, United States

Feed enhanced by Better Feed from Ozh

us dollar

Author: Dorin Rosu