GBPJPY Bearish Pressure Intensifies at 177.0600 Level

GBPJPY Analysis: Market Faces Bearish Pressure as the Price Hits 177.0600

GBPJPY faces bearish pressure as the price hits 177.0600. Since the market’s previous downward structure reversed, the GBPJPY has been climbing quickly. On the other hand, the RSI indicates that the market is already overpriced. A probable slump is indicated by the RSI (Relative Strength Index) being over the threshold of 70.0.

GBPJPY Significant Zones

Demand Zones: 154.7100, 148.6300

Supply Zones: 177.0600, 188.8100

Before an upward trend took hold, an intermediate-term high formed at 172.1300. The bulls seized all market dominance as the price emerged from the undervalued phase. After reaching the demand level of 148.6300, the GBPJPY price skyrocketed to a swing high. The surge led to a fair value gap, constituting a sell-side inefficiency. The swing high was established at 172.1300, and GBPJPY started to decline. The slump persisted until it corrected the sell-side inefficiency.

The underpriced zone was once again reached, according to the Relative Strength Index (RSI). The eager bulls promptly placed their buy orders in response, causing an increase in value as more buy orders came in. The upward expansion lacked energy until the diagonal resistance broke in May 2023. Since the diagonal resistance broke, the GBPJPY has been rising, with a recent low established at 167.8400.

Market Expectation

The RSI indicator also indicates that GBPJPY is quite expensive on the 4H chart. As it encounters bearish pressure at 177.0600, GBPJPY is likely to continue to fall from here.