Possible Support at 1.2777 on GBP/USD?

The Great Britain pound versus the US dollar currency pair seems to be bouncing off 1.2777. Is this a sustainable appreciation?

Long-term perspective
From the 1.2075 low, after the validation of 1.2092 as support, the price began an ascending trend, as marked by the 1.2818 higher high and 1.2251 higher low, respectively.
This fueled the bullish enthusiasm and, as a result, the price climbed, almost touching the 1.3502 intermediary level.
Along the path of this rise, the price pierced important areas, such as the resistance line of the ascending channel, the descending trendline, and the firm 1.3261 resistance level.
However, this overextension backfired, as the bears, as soon as they saw that the bulls are showing slight signs of indecision, they started a strong depreciation.
The resulting fall brought the price back under the resistance area mentioned earlier, touching the 1.2777 intermediate level.
Of course, after such a strong drop, the bears feel confident. Also, they seem to have paused so that the resulting profit booking aids in not confining the movement as an overextension.
So, as long as the 1.3000 psychological level acts as resistance, a new downward leg may come about. Such a development would target the 1.2514 support.
On the flip side, if 1.3000 has a bullish preference, then 1.3261 may be paid a visit.
Short-term perspective
The appreciation from the 1.3053 low extended until the 1.3482 high, from where a convinced decline came into being.
Nevertheless, the fall may have found support at the 1.2782 firm area, as the lows of a possible double bottom, 1.2762 and 1.2814, respectively, indicate.
So, if the 1.2867 intermediary level is validated as support, thus playing the role of the chart pattern’s neckline, then 1.2983 could be the next target.
Then, if 1.2983 limits further appreciation attempts, a new depreciation may be printed, targeting 1.2783. Only if 1.2983 is validated as support, then 1.3157 will play the role of the next target.

Levels to keep an eye on:

D1: 1.3000 1.2514 1.3261
H4: 1.2867 1.2983 1.2783 1.3157

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Original from: www.earnforex.com