Bulls Reject from 1.3261 on GBP/USD

The Great Britain pound versus United States dollar currency pair seems, aside from governed by a lot of volatility, steered by the bulls.

Long-term perspective
The low of 1.2075, a false piercing of the firm support area of 1.2092, gave birth to an ascending trend that, as of writing, extended until the 1.3539 high.
The 1.3539 high comes as a bullish victory after they had to retreat following the bearish pressure that, subsequent to the pin bar on September the 1st, sent the price beneath the triple resistance area defined by the 1.3261 level, the falling trendline, and the upper line of the rising channel.
Still, even if the bears posted the price to the lower edge of the ascending channel, the bulls accomplished to print the 1.2675 low, which would play the role of validating 1.2777 as support, thus keeping the trend valid.
From that point onwards, the market noted higher lows and highs, the latter being 1.3539, just a little above the 1.3502 intermediary level. However, it seems that the bears were still determined to defend the zone, as the drop to 1.3223 points out.
Nevertheless, the bulls unleashed their fury, causing a rejection from the 1.3261 level. If they keep up the momentum, then 1.3502 could become support, which, in turn, exposes 1.3618.
On the flip side, if the price falls back to 1.3261, then the level could cede, thus opening the path to the 1.3000 psychological level.

Short-term perspective
After the rise that started from the 1.2853 low, the price extended until the 1.3398 high.
From there, a range trading phase took shape, the price being limited by 1.3268 as support and 1.3392 as resistance.
Finally, the bulls managed to pierce the resistance and craft the 1.3539 high. However, the bears sent the price under the 1.3515, 1.3392, and 1.3268 potential support areas, noting the 1.3223 low.
Still, the bulls recovered from 1.3268. If 1.3392 becomes support, then the bulls have another shot for 1.3515. On the contrary, if 1.3392 remains resistance, then 1.3268 may be the next bearish objective.

Levels to keep an eye on:

D1: 1.3261 1.3502 1.3618 1.3000
H4: 1.3392 1.3515 1.3268

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Original from: www.earnforex.com