GBP/USD Price Analysis: Struggles to justify Thursday’s bearish spinning top below 1.2600
|- GBP/USD extends pullback from 1.2536 after flashing a bearish candlestick formation the previous day.
- Failures to cross 200-day EMA, lower high from the recent top favors the sellers.
- Bulls will have a bumpy road before challenging the June month top.
GBP/USD extends the latest recovery moves from 1.2536 to 1.2558 during the early Asian session on Friday. The Cable took a U-turn from 200-day EMA but couldn’t slip below 21-day EMA, which in turn portrayed a bearish spinning top on Thursday. The resulted formation gains support from the pair’s lower highs since July 09.
As a result, the sellers remain hopeful to attack the monthly low of 1.2480 with 1.2525, comprising 21-day EMA, followed by 1.2500, acting as immediate supports.
Should there be a clear downside past-1.2480, 1.2400 and 1.2350/45 can entertain the pessimists ahead of pushing them to June month’s low near 1.2250.
Alternatively, a daily close beyond 200-day EMA level of 1.2590 could renew attempts to refresh the monthly high of 1.2670. In doing so, 1.2625/30 can offer an intermediate halt during the rise.
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.