Market Analysis: GBPJPY Bearish Market Diminishes, Suggesting a Conclusion
The GBPJPY currency pair peaked in early June 2024, followed by a sharp bearish reversal. This downward movement was characterized by significant bearish candles, indicating strong selling pressure within the market. A critical threshold at 195.600 was surpassed as the pair’s value rapidly descended towards the 190.710 level, recognized as a key demand zone.
GBPJPY Significant Zones
Resistance Levels: 199.600, 202.200
Support Levels: 195.600, 190.710
As the GBPJPY price approached this demand level, signs indicated the bearish momentum was waning. This observation is supported by the daily Relative Strength Index (RSI), which signaled an oversold condition—often seen as a precursor to a potential easing of the bearish trend. The RSI data, suggesting the pair was trading well below the oversold threshold, lends credibility to the analysis that the bearish momentum may be nearing its end.
Given the technical indicators, it is reasonable to expect that GBPJPY will not breach the 190.710 demand level. A bullish retracement is anticipated, providing a temporary reprieve from the prevailing downward trajectory.
Market Expectation
The extent of the anticipated retracement is projected to meet resistance at the 4-hour order block, which could serve as a turning point for the currency pair. Should the price action resonate with this analysis, GBPJPY may encounter a period of consolidation or reversal before any potential resumption of its bearish trend. By leveraging forex signals, traders can navigate these movements more effectively.
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