GBP/USD Price Analysis: Friday’s Gravestone Doji keeps sellers hopeful above 1.3800
|- GBP/USD edges lower after posting a bearish candlestick formation.
- Receding bullish bias of MACD around a nine-week-old resistance line challenges buyers.
- 200-DMA offers immediate support, 1.3900 adds to the upside filters.
Having stepped back from a monthly, GBP/USD remains defensive around 1.3830 during the initial Asian session on Monday.
The cable poked to a one-week high the previous day before reversing from 1.3887, which in turn portrayed a Gravestone Doji bearish candlestick near a downward sloping resistance line from July 30.
In addition to the bearish candlestick formation surrounding the short-term resistance line, the receding bullish bias of the MACD signals also keeps sellers hopeful.
However, 200-SMA restricts immediate downside 1.3830, a break of which will direct the GBP/USD prices towards a three-week-old support line near 1.3760.
Should the pair sellers manage to conquer the 1.3760 level, the monthly low around 1.3725 and 1.3690 may entertain them ahead of July’s bottom surrounding 1.3570.
Meanwhile, the stated resistance line near 1.3870 guards the quote’s immediate upside ahead of the monthly top close to 1.3895.
In a case where GBP/USD crosses the 1.3895 hurdle, it needs validation from the 1.3900 round figure before directing bulls towards the July month high near 1.3985 and the 1.4000 psychological magnet.
GBP/USD: Daily chart
Trend: Pullback expected
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