#GBPUSD @ 1.26214 struggles to justify the previous day’s bullish Doji candlestick formation., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• GBP/USD struggles to justify the previous day’s bullish Doji candlestick formation.
• Bearish RSI divergence, nearly overbought positioning prod Cable buyers ahead of the key US CPI for April.
• Buyers remain hopeful unless witnessing clear break of 1.2500 support confluence.

The pair currently trades last at 1.26214.

The previous day high was 1.264 while the previous day low was 1.2578. The daily 38.2% Fib levels comes at 1.2616, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2602, expected to provide support.

GBP/USD treads water around 1.2630-20 heading into Wednesday’s London open as candlesticks and chart formations print mixed signals as US inflation data looms. In doing so, the Cable pair seesaws around the highest levels since May 2022, marked during early weekdays.

Also read: GBP/USD bulls revisit close to the European highs ahead of US CPI

It should be observed that the higher-low of prices join lower high of RSI to portray the bearish divergence.

That said, the Pound Sterling marked no change in prices the previous day, despite posting an 80-pip trading move, which in turn highlighted the Doji candlestick and raised bullish concerns about the GBP/USD pair’s rebound, following a pullback from a multi-month high.

Adding strength to the recovery hopes could be the Cable pair’s successful trading past the one-month-old ascending resistance line, now immediate support near 1.2580.

Even if the GBP/USD sellers manage to conquer the immediate resistance-turned-support of around 1.2580, a convergence of an upward-sloping trend line from April 21 and the 21-DMA, close to 1.2500, appears a tough nut to crack for the pair sellers before taking control.

On the contrary, tops marked during May 2022 and the latest peak highlight the 1.2665-70 region as the short-term key upside hurdle.

Following that, the GBP/USD bulls can quickly cross the 1.2700 hurdle ahead of targeting the early April 2022 low of near 1.2970.

Trend: Further upside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2622 at the time of writing. Pair opened at 1.2621 and is trading with a change of 0.01% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2497, 50 SMA 1.2325, 100 SMA @ 1.2235 and 200 SMA @ 1.1954.

The previous day high was 1.264 while the previous day low was 1.2578. The daily 38.2% Fib levels comes at 1.2616, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2602, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2586, 1.2551, 1.2525
• Pivot resistance is noted at 1.2648, 1.2675, 1.2709

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