Market Analysis – Price Encounters a Pause
GBPJPY manifested a significant shift in market sentiment in mid-January 2024, moving from a bearish trend to a bullish trend. Following this market trend shift, the GBPJPY continued its upward trajectory, consistently setting new highs and ultimately overcoming the significant 196.00 resistance level.
GBPJPY Significant Zones
Resistance Levels: 196.000, 202.000
Support Levels: 190.320, 186.000
Following the price momentum shift which occurred in January 2024, the price created steady highs lasting from January 2024 through to mid-March 2024 where the price encountered a consolidation phase above the 190.320 level. This consolidation acted as a springboard for prices to break structure, rapidly increasing bullish momentum and breaching the 196.000 resistance level.
After experiencing a sharp decline, the price still manages to stay above the 196.000 level showing an unyielding bullish stance. The daily Moving Average suggests a bullish trend with the price trading above its mark. However, the daily Relative Strength Index shows the price in the overbought region at 70.0, signaling a possible retracement. The 4-hour timeframe also supports a pullback as the necessary liquidity for bullish momentum is located below the 196.000 level near the daily order block.
Market Expectation
The anticipated retracement is expected to sweep liquidity below the 196.000 level and trigger the order block. Additionally, this leads to a strong bullish momentum that could help the price surpass the 202.000 resistance level.
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