GBPJPY Key Zones
Resistance Zones: 153.500, 152.500
Support Zones: 149.500, 148.500
GBPJPY Price Analysis
The support level at 148.500 was retested which led to a rally in the market on the 24th of March. This resulted in the formation of an ascending channel as price drove higher. GBPJPY broke out of the ascending channel on the 6th of April and plunged straight into 149.500 level. The drop in price created a new support which eventually was retested. A consolidation phase was formed between the 9th of April and the 21st of April before the market price started rising again. A new ascending channel has been formed just like the first one, and price is ready for a massive sell-off.
GBPJPY Price Anticipation
GBPJPY has continued to rally and has passed the previous high at 153.500. The price might likely drop aggressively as seen before with the previous ascending channel. The anticipation for the drop in price is also supported by the Stochastic indicator. The lines on the Stochastic are crossed at the upper part which signals readiness for the price to drop.
The RSI (Relative Strength Index) is also currently is on 70.42 which is overbought. This also signals sharp selling in the market.
The MACD (Moving Average Convergence Divergence) lines are above the histogram with the size of the bars dropping gently. This also signals a bearish run.
On the four-hour chart, the Stochastic lines are currently crossing within the overbought region for a drop in price. The MACD bars are also very small, the last candle has also formed a red coloration as at the time of writing signifying a bearish run.
The RSI did not make it to the overbought region, it lies gently under it facing the lower direction and signifying a bearish run. The price, therefore is likely to drop aggressively.
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