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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.1845
Today Daily Change	-0.0004
Today Daily Change %	-0.03%
Today daily open	1.1849

Trends
Daily SMA20	1.2025
Daily SMA50	1.2133
Daily SMA100	1.2003
Daily SMA200	1.1906

Levels
Previous Daily High	1.186
Previous Daily Low	1.1803
Previous Weekly High	1.2143
Previous Weekly Low	1.1922
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.1838
Daily Fibonacci 61.8%	1.1824
Daily Pivot Point S1	1.1814
Daily Pivot Point S2	1.178
Daily Pivot Point S3	1.1758
Daily Pivot Point R1	1.1871
Daily Pivot Point R2	1.1894
Daily Pivot Point R3	1.1928

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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