Bulls Steering Toward 1.4122 on GBP/USD?

The Great Britain pound versus the United States dollar currency pair seems to be in bullish hands. Is this really so?

Long-term perspective
The ascending trend that started at the 1.2675 low extended until the 1.4239 high. From there, after the failure from the bulls’ side to find support at 1.4122, the price ebbed until the 1.3778 low. Noteworthy is that, before reaching the aforementioned low, the bulls managed to temporarily use the 1.3854 intermediary level as support, but the bearish pressure proved too great.
Still, from the 1.3778 low, the bulls rotated the price and sent it above the upper line of the ascending channel. However, the bears replayed the earlier scene in an attempt to stabilize the price under 1.3854. Yet again, the bulls rotated the price, printing a higher low — with respect to 1.3787 — and noting the 1.4001 high — a lower high.
The fresh high of 1.4001 was immediately met by the bears, which caused another slide, this time only a little under the 1.3854 intermediary level — writing another higher low in the process.
If the bulls succeed to secure 1.3854, then 1.4122 is their next objective — with the 1.4000 psychological level, which is not marked on the chart, as an intermediate profit booking area.
Even if the price flips under 1.3854, as long as the 1.3778 is not taken out, the bulls are still on their way to 1.4222. However, if 1.3854 is validated as resistance and then 1.3778 allows a lower low to take shape, 1.3616 is the first bearish objective.

Short-term perspective
The fall that came about after the 1.4242 intermediary level was validated as resistance unveiled a consolidation phase limited by 1.3971 as ceiling and 1.3771 as floor.
As the bulls are attempting to win 1.3863, their success will translate into 1.3971 being paid a visit, after which 1.4049 could follow.
Of course, if 1.3863 proves to prefer the bears, then 1.3771 could be the next bearish stop.

Levels to keep an eye on:

D1: 1.3854 1.4000 1.4122 1.3616
H4: 1.3863 1.3971 1.4049 1.3771

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com