GBP/USD Price Analysis: Cable indecisive near 200-day SMA support

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  • GBP/USD charted a Doji candle on Wednesday, neutralizing the immediate bearish outlook. 
  • Tuesday’s low is now the level to beat for the bears. 

GBP/USD created a Doji candle at the confluence of the 200- and 100-day simple moving averages (SMA) on Wednesday. 

A Doji candle occurs when an asset sees two-way business but ends the day on a flat note. It is considered a sign of indecision. 

In GBP/USD’s case, the Doji candle has appeared following a notable sell-off from 1.3483 to 1.2675 and at the 200-day SMA support line. As such, it could be taken to represent seller exhaustion. 

That said, a bullish reversal would be confirmed if the pair ends Thursday above the Doji candle’s high of 1.2777. Alternatively, acceptance below the Doji’s low of 1.2675 would imply a continuation of the sell-off from 1.3483. 

At press time, the pair is trading at 1.2722, a level housing the 100- and 100-day SMAs. 

Daily chart

Trend: Neutral

Technical levels

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