GBP/JPY Declines as Price Faces Resistance at 183.870 Level 

GBPJPY Analysis: The Market Declines As Price Struggles To Break The Resistance At 183.870

GBPJPY declines as the price struggles to break the resistance at 183.870. The market is typically bullish since it has been rallying for a long time. According to the Relative Strength Index (RSI), the market has spent a long time above 50.0. Similarly, the MA Cross has made a bullish cross since April 2023.

GBPJPY Significant Zones
Demand Zones: 168.430, 148.630
Supply Zones: 183.870, 195.880

GBPJPY is currently bullish on the higher timeframe. The bullish trend emerged after the breakout from the triangle pattern, which extended into the year 2021. The emerging bullish trend drove GBPJPY beyond the previous resistance at the 148.630 price level. Following the breakout, the price expanded in fractals towards the previous resistance at 168.430. The selling pressure at the previous 168.430 resistance caused a quick fall to the downside.

When the discount zone reached 155.350, GBPJPY expanded upward to break the previous resistance. At 172.130 Yen, the British pound created a double top. However, the upward expansion resumed immediately after the emergence of three bearish candlesticks. The bearish candlesticks formed the daily bullish order block at the 168.430 demand zone. As GBPJPY now declines, this daily bullish order block might eventually instigate the resumption of the market’s bullish trend.

Market Expectation

A four-hour bearish order block formed as the price fell from the 183.870 resistance. As it appears, GBPJPY is reacting to the four-hour bearish order block. This reaction is expected to escalate into a massive crash beyond the previous low at the 176.310 price level.