Will the Bulls Retake 1.3854 on GBP/USD?

The Great Britain pound versus the United States dollar currency pair seems to be willing to rotate towards the north. Will the bears allow it?

Long-term perspective
The 1.2777 intermediary level granted only a false piercing. Thus, 1.2675 took the role of a low that started an ascending trend. In turn, the resulting trend climbed until the 1.4239 high.
Until the final leg, the bulls had to validate the firm area of 1.3618 as support. It happened after yet another false piercing which, in this case, printed the 1.3566 low.
From the 1.4239 high, the price ebbed until the 1.3854 intermediary level. Despite the bulls’ determination, they could not halt the drop that came about after the 1.4001 high. The decline noted the 1.3670 low but allowed a retracement that brought the price back to the 1.3854 intermediary level.
Noteworthy is that the price rotated well above the firm zone of 1.3616, which gives credit to the bulls. Still, it is important — from the bullish perspective — to see if 1.3854 is successfully turned into support.
So, if 1.3670 is to be confirmed as support, then the main bullish objective is represented by the double resistance area noted by the 1.4122 level and the upper line of the ascending channel. This scenario is aided by the overall ascending trend.
However, if 1.3854 proves to be a solid resistance, then 1.3616 may actually receive a visit.

Short-term perspective
Following the validation as resistance of the 1.4242 intermediary level, the price dropped until the 1.3771 firm support. From there, a consolidative phase took shape.
The consolidation came to a stop after the intermediary level of 1.3971 proved to be solid resistance. As a result, the decline continued until the 1.3668 low — piercing the 1.3771 support in the process.
Still, from the 1.3668 low, the bulls set the price back above 1.3771. If they do manage to validate 1.3771 as support, then the double resistance area marked by the falling trendline and the 1.3863 intermediary level is the first objective. If conquered, 1.3971 is the next target and challenge alike.
On the flip side, 1.3771 ceding opens the door to 1.3652.

Levels to keep an eye on:

D1: 1.3670 1.4122 1.3616
H4: 1.3771 1.3853 1.3971 1.3652

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Original from: www.earnforex.com