Market NewsTechnical Analysis

GBP/JPY: Bear Finds Its Strong Ground amid Bull’s Zone

  • GBP/JPY seems to have found its horizontal support.
  • The pair still trades below the simple moving average 30.
  • The price is approaching at massive resistance on the H1 chart.
  • Intraday minor charts have been bullish.
GBP/JPY H4 Chart
GBP/JPY H4 Chart

GBP/JPY- Technical Analysis-H4 Chart

The H4 chart shows that the price had multiple bounces at 181.150. At the last bounce, it produced a bullish engulfing candle. Thus, the buyers may keep their eyes on the pair to go long in the pair. However, the simple moving average 30 still works as a resistance. The buyers may wait for the price to breach the SMA 30. A breakout above the moving average may attract the buyers to push the price towards the North. The price may find its resistance around 183.700.

On the downside, if the SMA 30 produces a bearish reversal pattern, the sellers may keep their eyes to go short below the horizontal support at 181.150. The price may find its support again at the last swing low at 178.100.

GBP/JPY H1 Chart
GBP/JPY H1 Chart

Price Action Analysis- H1 Chart

The chart shows that at the last bounce the pair produced a morning star. This is a very strong bullish reversal pattern, which has attracted the buyers to push the price towards the upside as expected. As of writing, the price has been bullish. The buyers on the minor charts may push the price towards the upside from the value areas. The traders on the H1 chart may wait for the price to consolidate and produce a bullish reversal pattern at the value areas to go long in the pair. The price may find its resistance around 187.775.

On the contrary, for the sellers, it does not look good. The sellers must wait for the price to reach at significant resistance or make a breakout at the last swing low. As things stand with the pair, it may take time to happen.

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

Contact and follow Tareq on Twitter: @tareqfpn

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