GBPJPY Consolidates at a Premium as Bullish Sentiment Prevails

GBPJPY Analysis: Price Consolidates at Premium, Bulls Remain Optimistic

GBPJPY consolidates at a premium as the bulls remain optimistic. After a protracted period of markup against the sellers of GBPJPY, the market appears to be reaccumulating. However, the market’s overall trend continues to be bullish, and there doesn’t seem to be any indication that it will reverse. Once the consolidation phase is over, the uptrend is probably going to keep going.

GBPJPY Significant Zones
Demand Zones: 172.130, 155.350
Supply Zones: 184.010, 195.880

The bulls flooded the market following the trend reversal in January 2023, which led to an upward shift in market structure. The bears were scared out of the market after failing to drive prices lower than the 155.350 key low. As GBPJPY raced higher to invalidate the 161.210 swing high, the market structure changed. Before strongly recovering to make a new high at 166.000, the price once again tapped deeply into the discount zone. A small resistance was encountered at the psychological level of 166.000 as the first quarter of the year came to an end.

A significant decrease in the discount of the market’s trading range was caused by the small resistance. The further bearish movement was eventually restrained, nevertheless, by the bullish order block at the discount of the market’s trading range. As a result of the newly formed, vigorous rise, the market returned to its bullish trend. At the 184.010 resistance level, the bulls experienced a major setback. As long as GBPJPY resists the selling pressure from the 184.010 level, the uptrend is expected to continue.

Market Expectation

After the diagonal support was reached, the four-hour chart of GBPJPY finally turned bullish. As long as the price remains above the 186.760 high, an upward expansion is anticipated to continue given the market’s overall optimistic tendency.