Market NewsTechnical Analysis

GBP/JPY: A Strong Battle between Bull vs. Bear

  • GBP/JPY has been having a strong bearish correction
  • Simple Moving Average 30 still works as a support
  • The H1 Chart looks bearish
  • Minor Intraday charts have been  bearish
GBP/JPY H4 Chart
GBP/JPY H4 Chart

GBP/JPY-Technical Analysis-H4 Chart

The pair has been searching for its direction on the H4 chart since last week after making a strong bullish move. It found its horizontal support around 183.400 and had a bounce twice. At the second bounce, it produced a bullish inside bar and headed towards the North. On its way, it made a breakout at Simple Moving Average 30. As expected, the price then made a bearish correction and headed towards the upside again. However, it had a rejection around 186.00. Since then the price has been heading towards the South with strong bearish momentum. SMA 30 still holds the price as a support. Thus, buyers may keep their eyes on the pair to go long upon having a bullish reversal pattern. The price may find its next resistance around 186.700.

On the downside, a bearish breakout at SMA 30 may attract the sellers to go short upon having breakout confirmation.

GBP/JPY H1 Chart
GBP/JPY H1 Chart

Price Action Analysis-H1 Chart

While the H4 chart favors the Bull, the H1 chart looks good for the Bear. At the last bullish move, the price made a momentous bullish breakout at 185.230. It consolidated for a while and then continued its bullish journey with strong momentum. The price upon finding its resistance around 186.000 has been bearish on the H1 chart. The price breached the breakout level. As of writing, the level works as a flipped resistance. The sellers may be interested in selling the pair if the level produces a bearish reversal pattern. However, if the price goes back above the breakout level, then the buyers may look to go long and push the price towards the upside.

The H4 and the H1 charts’ price action are contradictory. Thus, traders are to take trading decisions cautiously around this area.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

EUR/GBP Struggles for Momentum as Eurozone Growth Falters

German GDP fell by 0.3% in Q4 2023, while EUR/USD tests 200-SDMA...

Market Alert: Levels to Watch for EUR/USD, GBP/USD, Gold

US Dollar maintains bullish momentum amid anticipation of core PCE data; EUR/USD,...

GBP/NZD: Choppy Price Action before a Breakout

GBP/NZD- Technical Analysis- H4 Chart The chart shows that the price has...

CHF/JPY: Bull Has an Edge

CHF/JPY – Technical Analysis- H4 Chart The chart shows that the price...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Learn to Read Charts
Educational Content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

EUR/GBP Struggles
Market News

EUR/GBP Struggles for Momentum as Eurozone Growth Falters

German GDP fell by 0.3% in Q4 2023, while EUR/USD tests 200-SDMA resistance amid mixed economic data.

Copyright © 2023 Forex Prop News. All Rights Reserved.