GBP/USD Price Analysis: Dragonfly Doji favors Cable to lick post-BoE wounds, focus on 1.2750 and US NFP


  • GBP/USD stays defensive after bouncing off a five-week low.
  • Dragonfly Doji bullish candlestick joins downbeat RSI to underpin minor recovery but Cable stays below key technical support-turned-resistance.
  • BoE’s dovish hike, mostly upbeat US data and hopes of positive surprise from NFP favor Pound Sterling sellers.
  • Further downside needs validation from late June swing low.

GBP/USD treads water around 1.2730 as it defends the previous day’s rebound from the lowest levels in five weeks but lacks upside momentum during early Friday morning in Asia. In doing so, the Cable pair struggles to justify the previous day’s Dragonfly Doji bullish candlestick, as well as the downbeat RSI (14) line, amid a cautious mood ahead of the US Nonfarm Payrolls (NFP).

The reason could be linked to the Bank of England’s (BoE) dovish hike joining the bearish MACD signals and the Pound Sterling’s sustained trading beneath the previously key technical support.

Also raed: GBP/USD recovers slightly after BoE’s rate hike, soft US economic data

Among them, the 50-DMA level of around 1.2735 gains the immediate attention of the GBP/USD buyers ahead of the five-month-old support-turned-resistance line around 1.2750.

Also challenging the short-term Cable upside is a downward-sloping resistance line from July 14, close to 1.2805 at the latest.

Meanwhile, the Pound Sterling’s pullback remains elusive unless it defies the bullish candlestick formation by slipping beneath the latest low of 1.2620. Even so, the late June bottom of around 1.2590 can act as an additional downside filter for the GBP/USD bears.

Overall, GBP/USD is likely to remain depressed despite the bullish candlestick and the pre-NFP consolidation.

GBP/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 1.2713
Today Daily Change 0.0001
Today Daily Change % 0.01%
Today daily open 1.2712
 
Trends
Daily SMA20 1.29
Daily SMA50 1.272
Daily SMA100 1.2574
Daily SMA200 1.2306
 
Levels
Previous Daily High 1.2806
Previous Daily Low 1.268
Previous Weekly High 1.2996
Previous Weekly Low 1.2763
Previous Monthly High 1.3142
Previous Monthly Low 1.2659
Daily Fibonacci 38.2% 1.2728
Daily Fibonacci 61.8% 1.2758
Daily Pivot Point S1 1.2659
Daily Pivot Point S2 1.2607
Daily Pivot Point S3 1.2534
Daily Pivot Point R1 1.2785
Daily Pivot Point R2 1.2858
Daily Pivot Point R3 1.291

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Next on the downside comes 0.6500

AUD/USD: Next on the downside comes 0.6500

Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.

AUD/USD News
EUR/USD pierces 1.06, finds lowest bids in a year

EUR/USD pierces 1.06, finds lowest bids in a year

EUR/USD trimmed further into low the side on Tuesday, shedding another third of a percent. Fiber briefly tested below 1.0600 during the day’s market session, and the pair is poised for further losses after a rapid seven-week decline from multi-month highs set just above 1.1200 in September.

EUR/USD News
Gold struggles to retain the $2,600 mark

Gold struggles to retain the $2,600 mark

Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.

Gold News
Ripple could rally 50% following renewed investor interest

Ripple could rally 50% following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. XRP could rally nearly 50% if it sustains a firm close above the neckline resistance of an inverted head and shoulders pattern.

Read more
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out

Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium

What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures