Bulls Still in Charge on GBP/USD Above 1.3616?

The Great Britain pound versus the United States dollar currency pair seems to have entered a consolidative phase. But is this really so?

Long-term perspective
From the 1.3482 high, failing the venture to take out the triple resistance area defined by the 1.3261 level, the falling trendline, and the upper line of the descending channel, the price ebbed until the 1.2675 low.
From there, determined, the bulls pushed the price anew towards higher values. Later, not without a fight, as the lows of 1.3134 and 1.3187, respectively, point out, they managed to conquer the area of 1.3261.
With 1.3261 secured, the bulls continued their endeavor, which resulted in capturing the 1.3502 intermediary level. Inevitably, their next target was the firm zone of 1.3616.
As they accomplished placing the price above it, the continuation of the rise from above 1.3616 seems to have been limited by the upper line of the ascending channel, for the best the bulls could do was to print the 1.3758 high.
Seeing this unfolding, the bears tested the waters, putting the price under the 1.3616 level, which led to the bulls swiftly rejecting the trial, letting behind the 1.3566 low as part of a false piercing.
Still, as from the 1.3566 low the bulls did not yield a convincing rally, the bears may have been entitled to draw a topping chart pattern, with the 1.3758 high playing as the first peak of such a conformation and 1.3616 as the neckline.
However, 1.3616 could become resistance if it is falsely pierced. This translates into the bears targeting the 1.3502 intermediary level. On the flip side, a validation of 1.3616 as support brings 1.3854 on the radar.

Short-term perspective
From the 1.3451 low, the price climbed to the 1.3758 high. Then, the price dropped until the 1.3566 low, from where the bulls quickly steered the situation as they saw fit.
However, with every closing in to the 1.3771 resistance area, the bulls seemed to be reluctant to break it.
Still, if the bulls seem to have managed to set the price above 1.3771. For the time being, it is interesting to see if the bears will interfere, for its validation as support exposes 1.3863, whereas it favoring a false piercing, will end up with 1.3652 being checked at least once more.

Levels to keep an eye on:

D1: 1.3616 1.3502 1.3854
H4: 1.3771 1.3652 1.3863

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Original from: www.earnforex.com