GBP/USD Consolidates Above 1.3616

The Great Britain pound versus the United States dollar currency pair seems to have entered a consolidative phase. May the bears make an appearance?

Long-term perspective
After hitting the 1.2251 low, the price started climbing, thus reaching the 1.3482 high. From there, it slipped back under the firm area of 1.3261, defining the 1.2675 low.
As the 1.2675 low ended up being part of a false piercing, the bulls went on unveiling a new appreciation. It took the shape of an ascending movement that, after it met the bearish resistance that crafted the 1.3134 and 1.3187 lows, respectively, climbed to the 1.3758 high.
Since the upper line of the ascending channel limited the high, a situation that exists since December 2020, the price started a consolidation that rests on the 1.3616 area.
As long as the price continues to unfold above 1.3616, which offers it the role of support, odds favor the bulls, granting them the intermediary level of 1.3854 as a prime target.
However, if the price slips under 1.3616, the immediate support sits at 1.3502, reinforced by the previous low at 1.3519.
If 1.3519 cedes, then the price may get into a deep corrective phase, which would aim for the double support area defined by the upper line of the ascending channel and the 1.3261 level.

Short-term perspective
From the 1.3429 low, in a surge of volatility, the price soared to 1.3703, above the 1.3652 level, only to fall to 1.3451.
Still, the bulls escalated again, crafting the 1.3710 high before the price was sunk once more.
Upon touching the 1.3515 level, the bulls rejected the fall and placed the price above 1.3652.
Even if the bulls printed the 1.3758 high, they have not been yet able to continue the rise.
So, as long as 1.3652 remains support, 1.3771 is the main bullish objective. However, if 1.3652 cedes, then 1.3515 gets exposed.

Levels to keep an eye on:

D1: 1.3616 1.3854 1.3502 1.3261
H4: 1.3652 1.3771 1.3515

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Original from: www.earnforex.com