Market NewsTechnical Analysis

GBP/JPY: Rejection or Bullish Breakout and Continuation?

  • The H4 chart finds a strong resistance
  • An ABC pattern is in play in the H4 chart
  • The H1 chart made a breakout at a channel’s resistance
  • Consolidation followed by bullish reversal at the breakout level may push the price upside
GBP/JPY H4 Chart
GBP/JPY H4 Chart

GBP/JPY Trades around a Strong Resistance

The pair produced a Double Bottom at 180.570 and made a good bullish move. It then had a bearish correction and produced an ABC pattern by producing a bullish Marubozu candle right at the Simple Moving Average 30, an ABC pattern. It has been bullish since then. However, the buyers would have liked stronger momentum. Nevertheless, the price has been heading towards the North. The pair trades around 183.230. The price had reacted at this level several times earlier. Thus, the buyers may have to be patient here. A bullish breakout above that level may add more buying pressure and push the price towards the North. The price may find its next resistance around 184.400. Simple Moving Average has been flat for quite a while. It suggests that the pair is about to make a strong breakout on either side. As it seems the breakout may take place towards the North.

GBP/JPY H1 Chart
GBP/JPY H1 Chart

The H1 Chart Breaks the Channel’s Resistance

The H1 chart shows that the price got trapped within that channel for a while. At the last bounce, it made a bullish move and had a rejection again at channel’s resistance. It has produced an Inside Bar and has been heading towards the North. On its way, it has made a bullish breakout at the channel’s resistance. The breakout may play a significant role to attract intraday buyers to go long in the pair and push the price towards the upside.

Considering both charts, it seems that the pair may continue its bullish move in the H4 chart. Without any doubt, the level of resistance is strong. However, the H1 and other intraday charts favor the Bull as well. Thus, the pair may extend its bullish run and remain bullish for some days.

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Your email address will not be published.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

Related Articles

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets

Asia-Pacific markets declined on Friday, reflecting Wall Street’s tech stock sell-off. Japan’s...

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch

Asia-Pacific markets plummeted on chip stock declines, reflecting global economic uncertainties and...

Forex Focus: Dollar Strength and Market Movements in Asia

U.S. retail sales in June held steady at $704.3B, buoyed by non-store...

Asian Markets React to Powell’s Dovish Remarks with Mixed Results

Asian markets reacted mixed after Powell's dovish comments, with Hong Kong's Hang...

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

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets
Market News

Profit-Taking and Tech Sector Weakness Drive Down Asia-Pacific Markets

Asia-Pacific markets declined on Friday, reflecting Wall Street’s tech stock sell-off. Japan’s inflation remained steady, and chip stocks showed resilience.

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch
Market News

Asia-Pacific Markets Plunge on Chip Stock Declines: Market Watch

Asia-Pacific markets plummeted on chip stock declines, reflecting global economic uncertainties and geopolitical tensions, impacting regional indices sharply.

Copyright © 2023 Forex Prop News. All Rights Reserved.