Market Analysis: GBPJPY Resumes Bearish Trend Amidst Temporary Bullish Pullback
The GBPJPY currency pair has resumed its strong bearish trend following a significant high formed in mid-July 2024. After reaching this peak, the pair experienced a sharp decline, breaking through the critical 185.390 level. This breach indicated strong downward momentum, but the decline found temporary support around the 180.200 level, establishing a major low. This level prompted a bullish retracement, which, however, faced significant resistance at the 192.560 zone.
GBPJPY Significant Zones
Resistance Levels: 192.560, 200.520
Support Levels: 185.390, 180.200 
Despite the brief rally, the overall market sentiment remains bearish. The price began to fall again as it failed to push above the 192.560 resistance, indicating a renewed downward push. Notably, this decline has shown no signs of reversal, with the market continuing to form bearish candles with minimal retracement, further reinforcing the bearish bias. The daily Moving Average has also confirmed this outlook, as prices are trading aggressively below this key indicator, validating the bearish momentum.
Further analysis of the 4-hour chart supports the bearish scenario, with a clear shift in market structure adding additional weight to the ongoing downtrend. The 4-hour timeframe reflects a decisive bearish structure, strengthening the expectation that the downward trend will persist. However, as the price approached the 185.390 demand level, signs of a potential bullish pullback emerged. The 4-hour Relative Strength Index (RSI) has shown rising momentum, suggesting that the market may be preparing for a short-term retracement.
Market Expectation
This bullish pullback is expected to target liquidity above the current market price, potentially triggering an order block on the 4-hour chart before the bearish trend resumes. Traders should monitor forex signals for potential entry points and further developments.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not for your investing results.
Leave a Reply