Market Analysis: Price Aims the 200.300 Supply Level
GBPJPY has exhibited a robust bullish trend following the pivotal break above the 193.380 level. This upward momentum propelled the pair to a significant supply level at 200.300 in late April 2024, before encountering resistance that led to a retracement.
GBPJPY Significant Zones
Resistance Levels: 200.300, 203.800
Support Levels: 193.380, 190.200
The recent rally saw the price reapproach the 200.300 level, yet it failed to effectively breach this threshold, resulting in a mild pullback. Despite this, the daily Moving Average continues to signal an underlying bullish momentum, supported by the increase in market strength indicated by the daily Relative Strength Index, which underscores the potential for a continued significant bullish trend.
The recent price action has also been characterized by a notable decline after retesting the 200.300 level, which saw the price erode the 4-hour liquidity below the market. This move did not engage the daily order block, suggesting the persistence and intensity of the bullish momentum. Furthermore, the liquidity concentration at the 200.300 level acts as a magnet, drawing the market towards it.
Market Expectation
The market suggests that a breach above the 200.300 price level is on the horizon, as the market seeks to capture the liquidity above this resistance. Upon achieving this, the price anticipates a potential pullback towards the daily order block.
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