GBPJPY Continues to Trend Bullish

Market Analysis: GBPJPY Bullish Momentum Resumes with Strong Support and Ascending Triangle Formation

The GBPJPY currency pair has resumed its bullish momentum after the significant bearish retracement. Throughout the last quarter of 2023, the 179.000 price level was tested multiple times without a successful breach, establishing a strong support zone. This level later proved instrumental in supporting the bullish trend, which began from the low formed in early January 2024.

GBPJPY Significant Zones

Resistance Levels: 197.450, 207.870
Support Levels: 188.740, 179.000

Since then, price action has gradually trended upwards, peaking at 207.870. The sharp retracement that followed caused the price to breach the key demand level at 188.740, with bears aiming to push the pair further down to the 179.000 level. However, the bearish pressure was unable to sustain itself, and the trend has since reversed back to bullish as the price structure shifts. Notably, the formation of a higher low, instead of a lower low, signals a change in market sentiment.

Currently, the price structure is transitioning to a bullish one, evidenced by the formation of a higher low. The 4-hour chart is also showing a classic ascending triangle pattern, a bullish continuation signal that suggests the pair is likely to break out upwards. Further supporting the bullish outlook, the daily Moving Average indicator confirms the trend, as the price remains above the indicator, providing additional confluence.

Market Expectation

As GBPJPY moves closer to the 197.450 resistance level, a bullish breakout from the ascending triangle pattern is expected. Should the price break through this level, further bullish expansion is anticipated, with potential upward movement toward the higher price regions beyond 197.450. This will definitely reflect in forex signals.

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