GBP/USD Price Analysis: Potentially bullish above 1.2110 as Doji forms off 200-day EMA

• GBP/USD grinds near intraday high, snaps two-day losing streak.
• Bullish candlestick formation, sustained bounce off key moving average favor buyers.
• Sellers remain off the table unless witnessing fresh monthly low.

GBP/USD justifies the previous day’s bullish candlestick formation above the 200-day Exponential Moving Average (EMA) as it prints the first daily gains in three. That said, the Cable pair portrays mild gains near 1.2165 heading into Thursday’s London open.

That said, the quote bounced off the 200-day EMA on Wednesday and marked a Doji candlestick to signal a reversal of the previous downside. Adding strength to the upside bias was the impending bull cross on the MACD indicator.

As a result, the GBP/USD buyers are well-set to poke the 1.2200 threshold comprising a three-week-old descending resistance line.

It’s worth noting, however, that the Cable pair’s strength past 1.2200 will need validation from the monthly high and the December 19, 2022 peak, respectively around 1.2210 and 1.2245, could act as the last defences of the bears before challenging the previous monthly peak of 1.2446.

Meanwhile, GBP/USD sellers may refrain from taking any positions unless the quote stays beyond the 200-day EMA level of 1.2110.

Following that, the 1.2000 psychological magnet and the monthly low of 1.1841 could entertain the bears.

In a case where the GBP/USD prices remain weak past 1.1841, the odds of witnessing a slump towards the late October swing high near 1.1645 can’t be ruled out.

GBP/USD: Daily chart

Trend: Further upside expected