Bulls Showing a Comeback from 1.3519 on GBP/USD?

The Great Britain pound versus the United States dollar currency pair seems to be surprised by the bulls. Will they be able to steer the price for the medium term?

Long-term perspective
The rise from the 1.2251 low stopped a hair away from the intermediate level of 1.3502, at 1.3482. From there, the price dropped until the 1.2675 low. However, the low marked the beginning of a new bullish march.
The bulls were so determined that not only they conquered the previously reluctant 1.3502 level but also touched, not once but twice, the upper line of the ascending channel.
In doing so, as the firm resistance is of 1.3619 is also nearby, it can be considered that they stopped at a zone of double resistance.
As expected, the bears quickly attempted to benefit from this opportunity, sending the price towards 1.3502.
Nevertheless, the bulls, still determined, printed the low of 1.3519, just above the intermediate level of 1.3502 — the same level where the bears stalled the price before. This may very well be considered as a payback since the same area — 1.3502 — did not get the chance to be touched, this time because the bulls stopped the fall in its tracks.
So, if the bulls maintain their momentum and capture 1.3616, then 1.3854 is on the way. Still, if 1.3616 turns to be a resistance, then 1.3502 may cede, an event that would expose 1.3261.

Short-term perspective
After the false piercing of 1.3175, the low of 1.3134 ignited a rally that noted the high of 1.3624. From there, the bears drastically pushed the price lower, etching the low of 1.3187.
However, the bulls saw in this fall opportunity, thus setting in motion a new rally, one that this time printed a higher high, at 1.3703. The bears counteracted, stamping the 1.3451 low.
Still, since it was a higher high with regards to 1.3429, it ended up as being a false piercing, fueling the advancement to 1.3710, a higher high.
Even if the movement was too quick, thus not sustainable, the previous false piercing gave 1.3515 a powerful supportive potential. As a result, the bulls are attempting to start yet a new rise from here.
So, as long as 1.3515 remains support, 1.3652 is in the cards and followed by 1.3771. Only a fall beneath 1.315 makes it possible for 1.3392 to be revisited.

Levels to keep an eye on:

D1: 1.3616 1.3854 1.3502 1.3261
H4: 1.3515 1.3652 1.3771 1.3392

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Original from: www.earnforex.com