GBPJPY Remains Bullish As Price Keeps Rallying in Fractals

GBPJPY Analysis: The Market Remains Bullish As Price Keeps Rallying in Fractals

GBPJPY remains bullish as the price keeps rallying in fractals. The Relative Strength Index (RSI) suggests that the market is just above 50.0. This implies that the market is trending upward, dominated by buyers.

GBPJPY Significant Zones
Demand Zones: 156.720, 148.630
Supply Zones: 163.030, 172.130

Since the 156.720 support failed, the GBPJPY buyers have controlled the market. The GBPJPY is rallying in fractals alongside a rising trendline, currently acting as diagonal support. Typically, this bullish trend began due to the buying pressure at 156.720 and the emergence of the rising trendline. The first breach of the 156.720 support this year was on January 3, 2023. After this, the price retraced into the demand zone before finally zooming off. The rapid expansion from the 156.720 support did not cease until a swing high formed at 166.00 on February 28, 2023.

On September 6, 2022, a fakeout occurred at the 163.030 price level after a long period of consolidation. However, the price made a true breakout to the downside as it cleared all previous lows above the 148.630 support. In October 2022, a long-term high formed as the GBPJPY flipped bearish while leaving some relatively equal highs on their way downward. The downtrend continued until the market structure shifted to the upside in January 2023. As the price keeps rallying, the relatively equal highs at the 169.080 price level might get invalidated.

Market Expectation

On the four-hour chart, the price broke the previous low at 161.200 as it sought to fill the fair value gap. Following the balance, the GBPJPY expanded aggressively to the upside. However, the 166.000 high will have to be invalidated for an upward market structure shift to be confirmed.