GBPJPY Analysis: Market Heads Lower After Price Rejection At The Bearish Order Block
GBPJPY heads lower after price rejection at the bearish order block. The bearish order block was formed on December 14, 2022, as the price got delivered to the downside. Since the market’s environment on the higher time frame is bearish, the GBPJPY might resume its downtrend thanks to the bearish order block.
GBPJPY Significant Zones
Demand Zones: 157.220, 148.630
Supply Zones: 163.030, 172.130
Before the emergence of the range market in the second and third quarters of the year 2022, GBPJPY was in an upward trend. The uptrend lasted until April 20, 2022, after the false breakout from the 163.030 resistance. Due to the selling pressure at the major resistance, the bulls were faced with a great challenge in keeping the market bullish. However, the bulls later pulled out as prices sank deeply into the discount. Nevertheless, the bulls seemed to have retreated to the major support at 148.630 owing to the sudden rally away from the support.
Moreover, the bulls’ comeback was short-lived, despite a very aggressive rally into the 172.130 supply zone. From the 172.130 supply zone, the GBPJPY sellers stormed the market with their sell orders. The influx of the sellers’ sell orders caused a market structure shift to the downside. The market remains bearish for now, even with the persistent rejection at the 157.220 major support level. Following the invalidation of the equal highs, the price surged upward into the bearish order block, which was also at a premium.
The diagonal support has been breached on the four-hour chart. GBPJPY is therefore expected to keep sinking downward. The rejection at the premium array is also likely to extend the bearish move until the 157.220 support is successfully broken to the downside.
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