GBP/USD Price Analysis: Fails to justify bullish spinning top near multi-day low around 1.1850
|- GBP/USD retreats from intraday high, fades bounce off the lowest levels since late November 2022.
- Bearish MACD signals, sustained trading below the key support line and 200-DMA favor sllers.
- Buyers lack conviction below 1.2150, one-month-old descending trend line adds to the upside filter.
GBP/USD struggles to extend the previous day’s corrective bounce off the lowest levels since November 21, 2022, making rounds to 1.1850 on Thursday morning in Asia.
In doing so, the Cable pair fails to justify the previous day’s bullish candlestick on the daily chart, namely the bullish spinning top.
The reason could be linked to the pair’s sustained downside break of a 15-week-old ascending trend line, previous support near 1.1935, as well as the 200-DMA breakdown. Also adding strength to the downside bias are the bearish MACD signals.
That said, the GBP/USD quote’s fresh weakness could aim for the 50% Fibonacci retracement level of November 2022 to January 2023 upside, near 1.1800.
Following that, a slump toward the 61.8% Fibonacci retracement level surrounding 1.1645, also known as the golden ratio, can’t be ruled out.
Meanwhile, the 200-DMA hurdle of around 1.1900 restricts immediate GBP/USD recovery before highlighting the support-turned-resistance line close to 1.1935.
Even if the Cable pair crosses the 1.1935 hurdle, a downward-sloping resistance line from early February, near 1.2055 could act as the last defense of the GBP/USD bears.
To sum up, GBP/USD remains on the bear’s radar despite the latest rebound, as well as posting the bullish candlestick.
GBP/USD: Daily chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.