GBPJPY Bulls Show Resilience with Continuous Price Rally

GBPJPY Analysis: Buyers Remain Persistent As The Price Keeps Rallying For Days

GBPJPY buyers remain persistent as the price keeps rallying for days. The rally has begun since the successful breakout through the diagonal resistance. Owing to the exit of the bears since the breakout, the market has been handed to the bulls.

GBPJPY Significant Zones
Demand Zones: 155.350, 148.630
Supply Zones: 172.130, 185.240

Before the breakout, the market’s direction was toward the falling trendline. On January 2, 2023, GBPJPY crashed downward to sweep the sell-side liquidity below the 159.740 price level. Following the inducement, the price hit major support at 155.350 Yen. The buying pressure at the major support caused the price to break the diagonal resistance as it flipped bullishly. At first, the bears failed to exit the market until the price began to gyrate about the falling trendline.

At 158.250 Japanese yen, GBPJPY created a swing low. The value of the British pound began to appreciate, leading to the breakout and more upswings. The MA Cross has revealed the market’s order flow since April 5, 2023. This was when the Moving Average Period 18 crossed the Moving Average Period 40. However, due to the indication of the RSI (Relative Strength Index), a downward correction is imminent.

Market Expectation

On the four-hour chart, the RSI indicator shows that a bearish move is looming. This is due to the bearish divergence signaled as the price forms higher highs while the RSI forms lower highs. A massive crash into the discount is anticipated as GBPJPY heads to break the previous low at 179.920.