GBPJPY Breaks Free from Consolidation Phase

Market Analysis: Buyers Need to Regain Confidence 

The GBPJPY has recently concluded a reaccumulation phase, as evidenced by its behavior on the daily chart. Throughout this accumulation period, the market exhibited a distinct range-bound pattern, fluctuating between the resistance level of 193.50 and the support level of 190.30. Recent trading sessions have witnessed the emergence of bullish candles, signaling a breakout from this consolidation phase.

Key Levels for GBPJPY:

Demand Levels: 190.30, 188.00, 185.20
Supply Levels: 193.50, 195.00, 200.00

The bullish momentum for GBPJPY commenced at the beginning of the year, propelled by a notable uptrend triggered by a bullish reversal indicated by the Stochastic indicator. Since December, the Stochastic has consistently provided timely signals from the overbought region. January marked a significant turning point, with the price surging above the Williams Alligator indicator, solidifying the bullish sentiment.

GBPJPY has traversed an expanding channel since February, reflecting a predominantly bullish market sentiment albeit with volatile price action. Following a test of the resistance levels around 193.50 in March, the market entered a consolidation phase, characterized by range-bound trading. However, recent price action, notably three consecutive bullish candles, indicates a resurgence of bullish momentum, leading to a breakout from the consolidation phase.

Market Expectations:

GBPJPY is poised to reach a high not seen in eight years, potentially surpassing 195.04. The prevailing bullish sentiment suggests the possibility of further upward movement, although a temporary pullback may occur as indicated by the Stochastic signaling an oversold market. Additionally, the Williams Alligator reinforces the bearish stance, suggesting caution amidst the bullish outlook.

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