- GBP/JPY seems to have its horizontal resistance on the H4 chart.
- The pair trades above the simple moving average 30.
- The H1 chart looks choppy bouncing at yesterday’s low.
- Intraday minor charts seems to be having bullish correction.
GBP/JPY – Technical Analysis- H4 chart
The chart shows that the price has been up trending on the H4 chart. The simple moving average 30 has been working as its support. However, the level of 188.000 seems to be working as horizontal resistance, where the price consolidated for a while and made a bearish move. The pair moved towards the North again for three bullish candles. It then produced a bearish engulfing candle right at a flipped resistance. Thus, the sellers may drive the price towards the South. Since the SMA 30 has been its support. Thus, sellers may consider it in their trade management.
On the contrary, if the price breaches the horizontal resistance, the buyers may get themselves engaged again to go long in the pair. The price in that case may find its resistance around 189.000.
Price Action Analysis- H1 Chart
A bullish trend line can be drawn on the H1 chart with little adjustment. The chart shows that the price has breached the trend line and traded below it. Thus, the sellers may eagerly wait for the chart to produce a bearish reversal pattern at the trend line’s resistance to go short in the pair. The price may find its support around 186.600.
On the other hand, if the price goes back into trend line’s support, the buyers may start looking to go long in the pair. The last swing high is to be considered on setting take profit. A breach above that level may generate more momentum and push the price towards the North further.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn