The Great Britain pound versus the Australian dollar currency pair is in a spot that just might favor the bulls if they know how and when to act.
The ascending movement that started after the confirmation of 1.7634 as support crystallized the last peak at 1.9522. Being a brief development, it resulted in a false break of the 1.9470 resistance, which in turn was seen by the bears as their chance to drive the price lower.
They took the chance and did just that, and as a consequence, the price extended its depreciation until 1.8651. But the bulls recovered and brought the price above the 1.8742 level, rendering the movement as a false break.
The low of 1.8651, if considered alongside the previous lows, is a higher low, a mark of the bullish profile, respectively. However, after the strong decrease, the bears could very well consider the appreciation from 1.8651 as their opportunity to short the market at better prices.
On the other hand, a truth that balances the situation is that 1.8742 is a relatively important level and if confirmed as support, then it could spark a new appreciation, one that at least could try to recover 1.9053, if not to extend until 1.9522 and take it out.
So, as long as the price oscillates above 1.8742, the bulls may easily reach 1.9055, and, later on, 1.9470. But if the bears manage to push the price back under 1.8742 and take out the low of 1.8651, then 1.8457 is exposed.
The descending movement that started after the confirmation as resistance of 1.9487 seems to have bottomed around the 1.8732 level.
The price is currently facing the 1.8912 resistance. If it manages to confirm it as support, then a strong appreciation may follow. Firstly it will render 1.9047 as support, and then 1.9346. However, the true test would be at 1.9487.
Even if the price is not capable of passing the 1.8912 level, as long as it oscillates above it, the aforementioned appreciation may still come. But if 1.8732 gives way, then the bears could easily overtake 1.8598 and 1.8420, respectively.
Levels to keep an eye on:
D1: 1.8742 1.9055 1.9470 1.8457
H4: 1.8912 1.9047 1.9346 1.9487 1.8732 1.8598 1.8420
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