Market Analysis: GBPJPY Market Begins to Experience Shift from Bearish to Bullish Momentum
The GBPJPY currency pair has recently experienced a significant turnaround after a period of aggressive selling. As sellers lose steam, buyers are starting to regain control of the market. The previously dominant bearish trend seems to be waning, especially as the pair encountered a significant order block at the 178.850 level, which now serves as a catalyst for a potential bullish reversal.
GBPJPY Significant Zones
Resistance Levels: 199.780, 208.600
Support Levels: 188.680, 178.850 
A closer look at the 4-hour chart reveals a noticeable shift towards bullish sentiment. This change in market direction is supported by various technical indicators. Notably, the Relative Strength Index (RSI) on the 4-hour timeframe shows a resurgence in buying strength as it exits the oversold territory, indicating that selling pressure is diminishing and buyers are beginning to assert influence.
Additionally, the GBPJPY price has moved above the Moving Average on the 4-hour chart, a technical signal often interpreted by traders as the development of bullish momentum. This alignment adds credibility to the expectation that the currency pair is setting the stage for a sustained recovery.
Market Expectation
Looking forward, current projections suggest that GBPJPY could continue its upward trend, potentially reclaiming the 188.680 level. If the bullish momentum is maintained, the pair may extend its gains, with a longer-term target of reaching the 199.780 level. Forex signals also indicate that this shift in momentum could present profitable opportunities for traders as the market transitions from a bearish to a bullish outlook.
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