GBPUSD – double Doji signals indecision and risk pullback; overall bias remains bullish
Bulls are pausing for the second day, with long-legged Doji left on Tuesday and today’s action being so far shaped in Doji candle, signaling indecision.
Steep three-day ascend from 1.3457 trough might be running out of steam, despite posting marginally higher high today on spike to 1.3836.
Bulls touched resistance at 1.3837 (Fibo 61.8% of 1.5016/1.1930 fall) but may face stronger headwinds at this strong obstacle, which could result in extended consolidation and possible stronger easing, before continuing.
Overbought daily indicators support the notion.
Top of thick hourly cloud marks solid support at 1.3775, together with today’s / Tuesday’s spike lows at 1.3756/41 respectively and break here would be a stronger signal of correction.
Otherwise, sustained break through 1.3837 pivot after narrow consolidation, could signal fresh bullish extension and expose psychological 1.4000 barrier.
Res: 1.3837; 1.3900; 1.3950; 1.4000
Sup: 1.3775; 1.3741; 1.3724; 1.3691