The Great Britain pound versus the United States dollar currency pair continues the movement towards the north. Are the bears anywhere near?
Long-term perspective
The rejection from the 1.4376 dominant support, which printed the 1.1409 low, extended — in the first run — until the 1.2647 high. After the price retraced to confirm the important level of 1.2092 as support, the bulls were able to print a rally that noted a new higher high — 1.2818 — and also start a new ascending trend, one in which the price still finds itself in.
The rise that commended after the double support — defined by the lower line of the ascending channel and the 1.2305 intermediary level — was validated managed to get above the solid 1.2514 level and confirm it as support, thus ensuring that — for the time being -the bulls are the ones in control.
The bullish power is visible as the price cruised thru the next resistance, the intermediary level of 1.2777, and keeps heading towards — what could be, given the current context — the main destination, 1.3000, respectively.
So, from this point onwards, two main scenarios are possible. In the first, the price continues to gain ground, getting closer and closer to the 1.3000 psychological level.
In the second one, a throwback takes place and stamps 1.2777 as support, continuing later on the path towards the same established objective, 1.3000. Only if the price falls under 1.2777, then the bears could impel further declines, which could bring the price back to the double support etched by the lower line of the ascending channel and the 1.2514 level.
Short-term perspective
The ascending movement that originated from the 1.2251 low extended until the 1.2669 high, from where a symmetrical triangle took shape. The chart pattern, one that signals the potential continuation of the movement that precedes it, played out by the book, as it fueled the rise after its resistance got pierced.
This rise, even after some short-lived bearish initiatives, was able to continue and thus pass beyond the important 1.2783 resistance, stretching till the 1.2876 intermediary level.
The price could consolidate above the intermediary level — 1.2876 — or it could retrace to 1.2783 to confirm it as support. Either of these developments sets the stage for 1.2983 to be paid a visit to.
However, if 1.2783 does not come to the bulls’ aid, then the price could retest the — now — triple support established by the upper and lower lines that bound the symmetrical triangle and the 1.2612 level.
Levels to keep an eye on:
D1: 1.3000 1.2777 1.2514
H4: 1.2876 1.2783 1.2983 1.2612
If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.