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Can the Bulls Take Out the High of 1.3313 on GBP/USD?

November 17, 2020 at 5:40 by Dorin Rosu

The Great Britain pound versus the US dollar currency pair seems to be willing to go north, but do the bulls have what it takes to push the price higher?

Long-term perspective

From the low of 1.2075, which validated the support of 1.2092, an ascending trend came into being.

The trend managed to extend until just a little under the 1.3502 intermediary level.

However, as the bulls extended a little too much and too quickly beyond the triple resistance area defined by the 1.3261, the upper line of the ascending channel, and the descending trendline, the bears washed away their gains, bringing the price back under this area.

In fact, the bears did not only shadow the extension above the mentioned area but also invalidated a big part of the appreciation, stopping at the 1.2675 low.

Still, the bulls held their ground and pushed the price back up. They were able to pierce and depart from the descending trendline, but they failed to conquer the 1.3261 level, as highlighted by the false piercing that 1.3313 is part of.

So, as long as 1.3261 maintains its role as resistance, the bears have the reasons to push the price lower, their primary objective being the triple support zone noted by the 1.3000 psychological level, the descending trendline, and the lower line of the rising channel.

Nevertheless, if the bulls do check 1.3261, then 1.3502 is the next area to be paid a visit.

Short-term perspective

From the 1.2853 low, the price rose, reaching the high of 1.3313. But 1.3313 was a short-lived victory for the bulls, as the price retraced under the 1.3268 level.

The fall extended until the 1.3106 low, from where the bulls tried a counteroffensive. However, as they were not successful in — at least -touching 1.3268 but let the price come back to 1.3175, the bears have reasons to believe that it is their turn.

So, if 1.3175 cedes, then 1.2983 is the main bearish objective, of course, with the intermediary targets of 1.3100 and 1.3000 along the way.

On the flip side, if the bulls do conquer 13268, then they can eye for 1.3349.

Levels to keep an eye on:


D1: 1.3261 1.3000 1.3502
H4: 1.3175 1.3983 1.3349

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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