Market Analysis: GBPJPY Continues its Prominent Rally
GBPJPY shows an impressive rally which originated from the 186.700 level. This upward trajectory has been characterized by the formation of higher highs and higher lows, a classic indication of a bullish trend that has maintained its momentum up to the latest price action.
GBPJPY Significant Zones
Resistance Levels: 193.800, 197.920
Support Levels: 190.400, 186.700
The bullish trend breached the 193.800 supply level, pushing towards the 197.920 mark, which subsequently acted as a formidable resistance point that prompted a retracement. However, recent developments suggest that the bearish pullback has reached its conclusion, as current price movements signal a resurgence of bullish sentiment. This perspective is further supported by the daily Moving Average, with prices consistently trading above the indicator, reinforcing the bullish outlook.
Despite these positive signs, The daily Relative Strength Index (RSI) has reached the 70.0 threshold, denoting an overbought condition. This is a warning sign that a potential pullback could be on the horizon, suggesting that the market may need to retrace further.
Further analysis of the 4-hour timeframe provides additional insights. After a structural shift indicating a bullish stance, prices escalated rapidly, surpassing the anticipated order block without activation. However, The 4-hour RSI echoes the daily readings, showing a downturn as it approaches the 30.0 oversold region, which may indicate a forthcoming decline.
Market Expectation
The anticipated decline in market price is expected to fall below and trigger the 4-hour order block, utilizing the liquidity in its path. This is anticipated to engineer a bullish momentum that would break through the 197.920 resistance level.
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