The Great Britain pound versus the United States dollar currency pair seems to be willing to head north. Do the bulls have enough steam for that?
After the appreciation that came about following the confirmation of 1.1476 as support, the price started an ascending trend.
The first impulsive swing, which started after a relative range trading phase, extended from the 1.2075 low to the 1.2818 high.
After the correction that joins the 1.2818 high to the 1.2251 low spawn the second impulsive swing, the price climbed a hair away from 1.3502. In the process, the triple resistance — made up by the descending trendline, the upper line of the ascending channel, and the 1.3261 level — was pierced, but then the price washed the gains, thus falling beneath this area.
As the retracement rendered the movement as a false break, the bears were able to prolong the fall until the 1.2675 low.
Nevertheless, the lower line of the ascending channel served as support, favoring the bulls, which send the price above 1.2675.
Initially, they were stopped in their tracks, but perseverance paid off, as they were able to rotate the price and send it above the 1.3000 psychological level.
As a result, an inverted head and shoulders was printed on the chart, with 1.2675 acting as the head, 1.2845 as the right-hand shoulder, and the 1.3000 intermediary level as the neckline.
As long as the neckline serves as support, the bulls can eye 1.3261. On the other hand, the double support defined by the lower line of the ascending channel and the 1.2777 level may act as a first bearish objective.
From the 1.2675 low, the price started an ascending trend. After the firm level of 1.2783 was secured, the bulls headed for 1.2983.
But 1.2983’s piercing was to come only after 1.2876 served as a slingshot, projecting the price above 1.2983.
As long as 1.2983 remains support, 1.3175 is the next bullish stop. On the flip side, a fall beneath it targets 1.2783.
Levels to keep an eye on:
D1: 1.3000 1.3261 1.2777
H4: 1.2983 1.3175 1.2783
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