Bulls Still Up to the Task on GBP/USD After the 1.3539 High?

The Great Britain pound versus the US dollar currency pair seems to be in a neutral zone. But is this really so?

Long-term perspective
After validating the firm support area of 1.2092, the bulls started an ascending trend in which the price continues to oscillate.
This is a major accomplishment from the bullish side, as they managed to save the trend after the false piercing of the triple resistance area — defined by the 1.3261 level, the descending trendline, and the upper line of the rising channel — caused a sharp decline that nearly entered into bearish territory, noting the 1.2675 low under the previous high of 1.2818.
So, after securing the intermediate level of 1.2777, the bulls continued their march, with the purpose of taking out the previous high, the one etched by the candle on September the 1st.
Now, the bulls can say that they have some good news and some bad news. The good news is that they did succeed in taking out the previous high, as the new one is at 1.3539.
The bad news is that they were not able to maintain the price above the 1.3502 intermediate level, as the price ebbed until the 1.3134 level. Still, they were capable of drawing a rejection, one that carried the price back above the firm area of 1.3261.
As long as 1.3261 maintains its role as support, 1.3502 could be paid a new visit, and the bulls could turn it into support. However, if 1.3261 cedes again, then 1.3000 may be the next bearish objective.

Short-term perspective
From the low of 1.3106, the price entered into an ascending phase, topping, in the first instance, at the 1.3398 high. After a relatively short-lived consolidation phase, the price continued toward the north, crafting the 1.3539 high.
After that, a series of lower highs and lows were unveiled, as highlighted on the chart.
If either 1.3268 or 1.3392 becomes support, then 1.3515 is the next bullish stop. On the flip side, if 1.3268 cedes, then 1.3175 is the next bearish aim.

Levels to keep an eye on:

D1: 1.3261 1.3502 1.3000
H4: 1.3268 1.3392 1.3515 1.3175

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Original from: www.earnforex.com