GBPJPY Approaches The Overbought Region As The Price Tends To Reach 177.060

GBPJPY Analysis: Market Approaches the Overbought Region As The Price Tends To Reach 177.060

GBPJPY approaches the overbought region as the price tends to reach 177.060. The bullish trend is a result of the bulls’ reentry at the 155.640 price level. This was after a long downward correction into the demand zone of 154.710.

GBPJPY Significant Zones
Demand Zones: 154.710, 148.630
Supply Zones: 177.060, 188.810

On September 26, 2022, the market made its last bearish candlestick into the 148.630 demand zone. This marked the end of the bearish trend and also the beginning of the overall bullish trend. The bullish trend was initially energetic, as the bulls aggressively drove the price upward. The aggressive rally was caused by the indication of the RSI (Relative Strength Index). The RSI indicator showed that GBPJPY was oversold and an upward correction or a total reversal was necessary.

GBPJPY eventually surged upward energetically until a swing high formed at 172.130. The 172.130 swing high was valid until a retest and breakout happened after six months. As the year 2023 started, the downward correction ended. The downward correction led to the commencement of the current phase of the bullish trend. A structure shift occurred to the upside, and the bulls have refused to exit the market even till now. According to the MA Cross, the direction of the price is bullish even as the oversold region is being approached.

Market Expectation

On the four-hour chart, the market has been bullish since the FVG (Fair Value Gap) was respected. At the 177.060 resistance level, GBPJPY should have been typically overbought. The occurrence of a downward correction or a complete reversal is probable at this level.