GBPJPY Analysis – Bulls Successfully Overturn the Price at 149.000
GBPJPY bulls have successfully executed a reversal at the 149.000 support level using an ascending triangle pattern. The 149.000 support level is one at which several market reversals have taken place previously, therefore it has happened again as predicted. However, the upturn in price wasn’t straightforward as the market dipped with strong momentum, breaking key levels on its way to reaching 149.000.
GBPJPY Key Levels
Resistance Levels: 150.510, 152.500
Support Levels: 147.450, 149.000
Price broke into the ranging zone on the 26th of November 2021. Reaction to the downward flow of the market then really began at 150.510. The 150.510 price line switched from market support to resistance after the price dropped below. Then, GBPJPY tapered upward from the 149.000 support as it sought to effect a reversal. This continued for 4 weeks till the price successfully broke out.
In breaking upward and out of the descending channel, the price employed a bullish engulfment candlestick pattern. Afterward, the market rose using consecutive bullish candlesticks. This helps to break past the upper border of the ranging zone at 152.500. A small pullback was needed to break the next resistance at 153.470. The Elders Force Index shows the switch of power to the bulls as it climbs into a positive value.
Market Expectations
The 4-hour chart shows there was an initial breakdown in reversal as the price was initially rejected at 152.500. However, a pullback eventually broke through it and completed the market’s reversal. GBPJPY remains upward-abounding as it tries to break past 154.710. Bulls can be expected to break through it as long as the Moving Average period 20 serves as market support.
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