GBPJPY Finally Breaks the 183.870 Resistance As Sellers Exit the Market

GBPJPY Analysis: Price Finally Breaks the 183.870 Resistance As Sellers Exit The Market

GBPJPY finally breaks the 183.870 resistance as the sellers fail to drive the market lower. Owing to the immediate retraction after the price hit the 183.870 resistance, the market sank lower. However, the bears were only able to push the market towards the 176.000 psychological level. At 176.310, GBPJPY resumed its uptrend due to the sellers’ failure to drive the price lower.

GBPJPY Significant Zones
Demand Zones: 168.430, 148.630
Supply Zones: 183.870, 195.880

During the exuberant ascent from late September to October 2022, a bullish order block formed around the 156.000 psychological level. At the return of GBPJPY from 168.430, the bullish order block was considered a POI (Point Of Interest) by the bulls. Coincidentally, the market flipped bullish as the year 2023 also began. GBPJPY has since been in a bullish trend despite the selling pressure at major resistance levels.

Following the invalidation of a diagonal resistance in March, GBPJPY expanded upward, forming a bullish order block at 168.430. The bullish order block, after a few days, supported the upward expansion until the price hit the 183.870 resistance. From the 183.870 resistance, GBPJPY retraced downward into an FVG (Fair Value Gap) at 176.00. According to the MACD (Moving Average Convergence Divergence), the overall trend of the market is bullish.

Market Expectation

After a liquidity raid on the discount zone, the price expanded upward to break the diagonal resistance. Following the breakout, the price retraced into a four-hour POI before resuming the market’s upward trend. GBPJPY is expected to keep expanding upward until the price enters the 195.880 supply zone.