GBPJPY Analysis: Market Consolidates In The Overbought Zone As Price Breaks Long-Term High
GBPJPY consolidates within the overbought zone as the worth breaks a long-term excessive. The damaged long-term excessive was on the 172.150 worth stage. A double prime preceded the breakout on the 172.150 worth stage. As the downtrend looms, the bulls would possibly return to the market when the worth touches the main trendline.
GBPJPY Significant Zones
Demand Zones: 154.710, 148.630
Supply Zones: 169.000, 172.790
A downtrend will possible ensue for the reason that Stochastic Oscillator stays above 80.0. This signifies that the British pound has been overbought in change for the Japanese yen. Nevertheless, the market’s setting continues to be bullish. A change of character or market construction to the draw back is required. This is to verify that GBPJPY has flipped bearish. Should the earlier low of 167.900 be damaged as the worth heads downward, the market’s character will change. Following the breakout, the worth will possible head down till it deeply sinks into the low cost zone.
Until just lately, GBPJPY traded between the 148.630 long-term low and the 172.150 earlier long-term excessive. The long-term low fashioned on September 26, 2022, after an enormous descent from a swing excessive. The swing excessive was later damaged as GBPJPY expanded upward to create the earlier long-term excessive at 172.150. As the growth to the upside ensued, a bullish order block was left on the 154.710 demand zone. Price finally returned to the bullish order block in January 2023. The return to the bullish order block led to the continued bullish development.
Market Expectation
A bearish divergence has already occurred on the four-hour chart. The worth now heads downward after hitting the 172.790 resistance. GBPJPY is predicted to crash massively till a serious demand zone is reached on the premium.
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