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Bears Testing the 1.3000 Level on GBP/USD

October 27, 2020 at 5:23 by Dorin Rosu

The Great Britain pound versus the United States dollar currency pair has to make a decision: above or beneath 1.3000?

Long-term perspective

After validating the firm level of 1.2092 as support, the price started an ascending trend, one that came very close to the 1.3502 intermediary level.

However, reaching 1.3502 meant passing a triple resistance area made up of the 1.3261 level, the upper line of the ascending channel, and the descending line.

But as the retracement from the 1.3502 was sharp, the bears felt confident and pushed the price as it was defining a throwback to the just pierced triple resistance area.

The result was the invalidation of the break, accompanied by the continuation of the fall until the double resistance area noted by the lower line of the ascending channel and the 1.2777 intermediary level.

However, from the 1.2675 low, the bulls won a new impulsive swing, thus crafting the 1.3167 high. Still, the bulls are attempting to refute a double resistance area, established by the descending trendline and the 1.3000 psychological level.

As long as the price oscillates above 1.3000, the bulls can hope for 1.3261. On the other hand, if 1.3000 serves the bears, then the double support drawn by both the lower line of the ascending channel and the 1.2777 intermediary level may very well be paid a visit.

Short-term perspective

From the 1.2675 low, the price started a rise that touched the 1.3175 firm area.

Upon reaching 1.3175, the bears commenced a retracement, which now sways above 1.2983.

If the bulls do manage to protect 1.2983, then they could send the price back to 1.3175, and even farther, to 1.3269.

On the flip side, if the bears continue their current momentum reluctantly, then 1.2876 is the next area of interest, followed by 1.2783.

Levels to keep an eye on:


D1: 1.3000 1.3261 1.2777
H4: 1.2983 1.3175 1.3269 1.2876 1.2783

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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