Market Analysis – Price Remains in the Ranging Phase
GBPJPY traders struggle for a breakthrough. The currency pair has experienced a recent sell-off, following a period of consolidation. The market has been range-bound for several weeks, with both bulls and bears vying for control. Last week, the bears showcased their strength but were unable to push the price lower than the 179.780 level.
GBPJPY Key Levels:
Resistance Levels: 185.150, 189.000
Support Levels: 179.780, 177.950
Towards the end of the year, the market witnessed a bearish streak as buyers failed to break above the 189.000 level despite two retests last month. The inability to breach this level signaled a shift in momentum, with sellers taking charge. The Parabolic SAR (Stop and Reverse) indicator confirmed this turn in sentiment.
With an influx of selling pressure, the sellers pushed through the 184.150 level with strong liquidity. They continued their downward move until they were ultimately halted at the 179.780 price zone. For the past few days, the market has been locked in a struggle between buyers and sellers, resulting in a ranging market.
Market Expectation
However, it is worth noting that this week has seen the market striving for solid gains, with sellers seemingly less active. As the new season approaches, it will be interesting to see how traders react and whether a breakout will occur. Presently, the sellers still maintain control of the market, but the dynamics could shift in the coming days. Nevertheless, the GBPJPY still appears to be promising a strong liquidity purge.
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