GBP/USD Price Analysis: Graveyard doji at six-week top keeps sellers hopeful above 1.2700

  • GBP/USD attempts recovery after stepping back from the six-week top flashed the previous day.
  • A bearish candlestick formation suggests a pullback to the area comprising mid-June, early-July tops.
  • Bulls will have to cross June month’s peak to for confirming further upside.

GBP/USD recovers to 1.2733 amid the initial Asian session on Wednesday. The pair surged to the highest since June 10 on Tuesday but flashed a bearish candlestick formation on the recent top before receding to 1.2715.

Considering the Graveyard Doji on the four-hour chart, coupled with failures to refresh the June month’s top, the Cable is likely to witness further pullback. In doing so, the 1.2685-70 region comprising highs marked between June 16 and July 09 will be the key for the sellers.

If at all bullish MACD fails to trigger the pair’s bounce off 1.2670, an ascending trend line from June 30, currently around 1.2550, could lure the bears.

Meanwhile, an upside clearance of the June month’s top surrounding 1.2815 will propel the quote towards the February-month lows near 1.2840 and 1.2880 ahead of targeting 1.3000 psychological magnet.

GBP/USD four-hour chart

Trend: Pullback expected

 

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