GBPJPY Is Accumulating in a Critical Zone as It Prepares for an Upsurge

GBPJPY Analysis – Price Is Accumulating to Push Out of Its Descending Channel

GBPJPY is accumulating in a critical zone as it prepares for an upsurge out of its descending channel. The market dropped below the 150.510 price line on the first of December. With the significant level of 149.000 providing strong support, the price begins accumulating with the goal of pushing the market back and eventually breaking out of its current descending channel.

GBPJPY Significant Levels

Resistance Levels: 158.200, 154.710
Support Levels: 149.000, 152.500
Sellers are retaliating for the upsurge that happened in the market on the 8th of October. During the upsurge, GBPJPY dashed through the 152.500 key level and rose almost 4% in 9 trading days to reach 158.200. Sellers started overturning the market using a bearish engulfment candlestick pattern. The first point of accumulation was at 155.920, but the bears were strong enough to still push the market down. The same thing happened just above the 152.500 critical level.

Following a drop from the critical level of 152.500, the price broke through several levels to reach the strong support level of 149.000, where GBPJPY is now accumulating. The support provides a solid platform for the bulls to step in and finally influence the market. The MACD (Moving Average Convergence Divergence) lines have now crossed each other upward from a bearish position, while the daily candles have climbed above the MA period 10 (Moving Average). This shows bullish market endeavors.

Market Anticipation

On the 4-hour chart, the market can be seen accumulating and tapering through an ascending triangle. Price has traded to the upside of the MA period 10 and has broken out of the triangle as it aims for the upper border of the descending channel. The MACD solidifies the market’s bullish stance as its lines are not crossing over the zero level with bullish histogram bars accompanying.

The market is likely to pull back before surging towards 152.500, breaking out of the channel in the process.

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