Market Analysis: GBPJPY Maintains A Broader Bullish Trend
The GBPJPY currency pair has maintained a bullish trajectory since establishing a significant low in early August 2024. This upward movement aligns with a broader bullish trend line on the daily chart, reflecting sustained bullish market sentiment. The Daily Moving Average (DMA) has been instrumental in confirming the prevailing trend direction, offering traders valuable insights into whether the pair is in an immediate uptrend or downtrend.
GBPJPY Significant Zones
Resistance Levels: 199.200, 205.340
Support Levels: 188.960, 183.500
After reaching a resistance level near 199.200, GBPJPY faced rejection, initiating a retracement to 188.960, which formed a critical support level. This support allowed the bullish trend to resume briefly. However, subsequent attempts to breach the 199.200 resistance level failed, highlighting weakening bullish momentum and resulting in bearish reactions.
On the 4-hour timeframe, a closer look provides further clarity. A double-top pattern near the 199.200 resistance level underscored the strength of this zone. Following this formation, the minor bullish trend line was breached, signaling a potential shift in market sentiment. This development marked the onset of a bearish phase, with sellers gaining control.
Market Expectation
The immediate focus shifts to the 188.960 support level, which has previously played a pivotal role. A bounce from this level could reignite bullish momentum, sustaining the broader uptrend. Conversely, a decisive break below 188.960 would indicate a significant change in market dynamics, suggesting a bearish trend might dominate in the short to medium term. Traders are encouraged to leverage forex signals to navigate these potential market shifts effectively.
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