GBPJPY Analysis – Price Expands Upward To Execute Sell Orders At Diagonal Resistance
GBPJPY expands upward to execute sell orders at diagonal resistance. Since the return to the order block on December 13, 2022, the market’s order flow has been bearish. However, a short-term rally is needed for the price to retrace into a point of interest at the premium for the bearish move to continue algorithmically.
GBPJPY Significant Zones
Demand Zones: 155.350, 148.630
Supply Zones: 172.130, 163.030
The downturn began at the 172.130 price level due to the selling pressure present in the supply zone. On October 29, 2022, GBPJPY swerved downward to begin the downtrend alongside the diagonal resistance. On December 13, 2022, the price surged into the bearish order block to execute the sell orders therein. Before the change of character and the u-turn at the 172.130 price level, the price expanded on September 26, 2022, from an extreme discount zone, creating some liquidity voids that have now been filled in the current downtrend course.
Until September last year, the market’s direction was neither upward nor downward on the daily time frame. GBPJPY was typically fluctuating and gyrating about the 163.030 price level. According to the Moving Average Convergence Divergence (MACD) indicator, the market was in a consolidation phase, as the MACD tends to become parallel to the zero line. Should the major support level of 155.350 now break to the downside, the GBPJPY might remain bearish for a long time. In the same vein, the diagonal resistance might not get invalidated anytime soon since the bears are still in control of the market.
GBPJPY is characterized by breaks of structures to the upside on the four-hour chart. Until the diagonal resistance is reached, the price might not swerve to the downside.
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