The Great Britain pound versus the US dollar currency pair seems to be in bearish hands. Do the bulls still have any chances?
The appreciation from 1.1409 peaked at 1.2647 before making a throwback to the major support level of 1.2092. From there, another appreciation commenced, one that managed to pass the previous high and touched the intermediary level of 1.2777.
However, the throwback that was supposed to validate 1.2514 as support and fuel further appreciation ended up not only by piercing the level, but also proved it as resistance on June 24.
The result was a decline that sent the price under the intermediary level of 1.2305. If the bulls don’t manage to get the price above 1.2305 and confirm it as support, then the depreciation may extend until the next intermediary level, 1.2198 and, later on, touch the solid support of 1.2092.
On the flip side, if the bulls do manage to benefit from the supportive role of 1.2305, then they could hope for a recovery that would bring the price back to the 1.2514 resistance level.
The price is in a descending trend starting from the 1.2813 high, after the major resistance level of 1.2783 was confirmed. Since then, the price respected both the resistance line of the channel and the levels, piercing the latter ones and validating them as resistances.
So, if the price repeats this process, then 1.2282 might be confirmed as resistance, either by a throwback or by a consolidation phase that allows the decline in a later stage. In this case, the bears could target the 1.2203 intermediary level.
However, if the bulls are able to bring the price above 1.2282, then a rally could start, but it could be limited by the upper line of the descending channel. If the bulls pas it, then they would have to validate 1.2432 as support, otherwise the bears could take over, sending the price back to 1.2282.
If the bulls take over the game and succeed validating 1.2432 as support, then they could head for 1.2612, their main objective for the time being.
Levels to keep an eye on:
D1: 1.2305 1.2198 1.2092 1.2514
H4: 1.2282 1.2203 1.2432 1.2612
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