Market Analysis – Bears are Likely to Gain Momentum.
GBPJPY buyers face a tightening position. The GBPJPY pair may be shifting its focus as the buy position tightens. The market could be taking another step this week, and the current scene shows that buyers are once again losing out. The bulls had made a strong push up to the key level of 188.980. However, their pace has declined, and there hasn’t been enough attraction to pull the price beyond this key level.
GBPJPY Critical Levels
Resistance Levels: 188.980, 184.650
Support Levels: 181.250, 178.220
Even last year, the buyers found it challenging to break through the 188.980 price zone. The last retest of this level was held in November when the buying strength tightened and couldn’t push further. On the other hand, the bears engaged and pushed the price down to a significant level of 178.220.
GBPJPY, however, decided to start this year on a fresh bullish slate. But right now, their efforts seem to be dwindling as sellers intend to drive the price back down. The Stochastic Oscillator, a momentum indicator, has been trading in overbought territory for a while.
Market Expectation
Despite the market volatility indicated by the Bollinger Bands, the buyers are likely to struggle at this point. It is more plausible to see the price make a U-turn and head lower. Nevertheless, hope remains for the buyers to charge forward and break through this important key level of 188.980. The reaction at this level will soon give us a clear indication of where GBPJPY is heading.
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