GBP/USD Price Analysis: Potentially bullish above 1.2110 as Doji forms off 200-day EMA

GBP/USD grinds near intraday high, snaps two-day losing streak.
Bullish candlestick formation, sustained bounce off key moving average favor buyers.
Sellers remain off the table unless witnessing fresh monthly low.

Anil Panchal FXStreet

GBP/USD justifies the previous day’s bullish candlestick formation above the 200-day Exponential Moving Average (EMA) as it prints the first daily gains in three. That said, the Cable pair portrays mild gains near 1.2165 heading into Thursday’s London open.

That said, the quote bounced off the 200-day EMA on Wednesday and marked a Doji candlestick to signal a reversal of the previous downside. Adding strength to the upside bias was the impending bull cross on the MACD indicator.

As a result, the GBP/USD buyers are well-set to poke the 1.2200 threshold comprising a three-week-old descending resistance line.

It’s worth noting, however, that the Cable pair’s strength past 1.2200 will need validation from the monthly high and the December 19, 2022 peak, respectively around 1.2210 and 1.2245, could act as the last defences of the bears before challenging the previous monthly peak of 1.2446.

Meanwhile, GBP/USD sellers may refrain from taking any positions unless the quote stays beyond the 200-day EMA level of 1.2110.

Following that, the 1.2000 psychological magnet and the monthly low of 1.1841 could entertain the bears.

In a case where the GBP/USD prices remain weak past 1.1841, the odds of witnessing a slump towards the late October swing high near 1.1645 can’t be ruled out.

GBP/USD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2165
Today Daily Change	0.0019
Today Daily Change %	0.16%
Today daily open	1.2146

Trends
Daily SMA20	1.2082
Daily SMA50	1.1999
Daily SMA100	1.168
Daily SMA200	1.2005

Levels
Previous Daily High	1.2179
Previous Daily Low	1.21
Previous Weekly High	1.2102
Previous Weekly Low	1.1841
Previous Monthly High	1.2447
Previous Monthly Low	1.1992
Daily Fibonacci 38.2%	1.213
Daily Fibonacci 61.8%	1.2149
Daily Pivot Point S1	1.2105
Daily Pivot Point S2	1.2064
Daily Pivot Point S3	1.2027
Daily Pivot Point R1	1.2183
Daily Pivot Point R2	1.222
Daily Pivot Point R3	1.2261

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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