GBPJPY Analysis: Buyers Remain Resilient As Price Plunges Into The Discount Zone
GBPJPY buyers remain resilient as the price plunges into the discount zone. The ongoing bullish trend took root when buyers stormed the market following a retest of the 155.350 support level in January 2023. Presently, GBPJPY is on a downward trajectory due to the selling pressure emanating from the premium zone. Nonetheless, the resurgence of the market’s uptrend is imminent as the price ventures into oversold territory.
GBPJPY Significant Zones
Demand Zones: 176.310, 172.130
Supply Zones: 186.760, 191.990
At the year start, GBPJPY observed a surge in purchasing activity emanating from the discount zone. This influx of buyers elevated market volatility and bolstered buying momentum. The persistent expansion dismantled the preexisting market framework, propelling GBPJPY to higher levels. The upward trajectory persevered with minor retracements as sellers grappled to regain dominance. GBPJPY underwent a period of consolidation, trading within the boundaries of the former peak at 172.130 and the former nadir at 148.630. In March, during a substantial corrective phase in the early stages of the uptrend, a low of 158.250 formed.
The uptrend regained momentum as buying enthusiasm from the discount zone propelled prices skyward. GBPJPY ascended to overbought levels at 172.130, prompting a brief retracement. This retracement established a new low as selling pressure waned. The bullish trajectory resumed its course following the establishment of this new low. It persisted until a significant peak was achieved on July 4, 2023, at 184.010. Another rupture in the market structure occurred, plunging GBPJPY into an oversold state, as indicated by the Stochastic Oscillator. Despite the ongoing descent in prices, the overall market trajectory remains bullish.
According to the MA Cross on the four-hour chart, the market direction is currently bearish. Nevertheless, the bearish momentum abated as the buyers set out to take control of the market, according to the Stochastic Oscillator. GBPJPY may be on an upward trajectory as the bullish trend reasserts itself from the discount zone.