Home » Technical Analysis » British Pound Forms a Bullish Doji Candlestick

British Pound Forms a Bullish Doji Candlestick

British

The British pound is trading near 1.33 during the Asian trade session on Wednesday. The GBP/USD currency exchange rate hit the 2021 low price point again overnight and is now looking to confirm a bullish Doji candlestick.

The economic calendar is all about purchasing managers’ indices (PMI). The United Kingdom will publish their monthly manufacturing purchasing managers’ index. Nationwide will release their British monthly housing price index.

The world’s largest economy, the United States has key labor data on the calendar. ADP will publish their November non-farm payroll change.

The Institute for Supply Management (ISM) will publish their monthly manufacturing purchasing managers’ index. IHS Markit will release their U.S. monthly manufacturing purchasing managers’ index.

The European Union will publish their monthly manufacturing purchasing managers’ index as will various euro area nations including Germany. The Eurozone’s largest economy, Germany, will also publish their monthly retail sales data. German economic data has shown a concerning sharp spike in inflation, as of late.

Daily British Pound Technical Report

Looking at the above daily MT 4 price action chart, the 14 day MACD histogram looks bearish. The GBP/USD Fore pair has been pulling back as an unconfirmed bullish Doji candlestick has formed. The British pound is also below the short-term ten (10) day simple moving average and a one month old falling trend line.

Immediate resistance lines up at the month old falling trend line around 1.3360. A daily close above 1.3360 opens the door for September’s low price level at 1.3410. The 18 November swing high price point lines up at 1.3515.         

On the downside, there is a falling trend line from July lining up around 1.3265. The next downside barrier lines up at the yearly low price point at 1.3194. The October 2020 high price point lines up at 1.3175. The next downside barrier lines up at 1.3130.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

Check Also

gold

Gold Futures look to Stay Above $1,800 per Ounce

0.0 00 The spot gold futures contract is trading back above $1,800 per ounce after …