GBPJPY Analysis-Price Is Likely to Bounce off Following a Pullback
GBPJPY is set to regain strength following a drawback in the market. The price trend is currently slipping as a consequence of insufficient buying liquidity, which could have caused further expansion in the market. As of last week, a progressive movement was seen as the currency pair broke through beyond the 169.700 key zone. The buyers were unable to sustain their buying vigor as this week opened with a strong decline. As we speak, the sellers are attempting to re-enter the 169.450 key zone. However, we hope that once these drawbacks are put on hold, the buyers are more likely to regain a buying tendency in the market.
GBPJPY Key Levels
Resistance Levels: 169.450, 166.700
Support Levels: 154.650, 150.970
Before selling activity on the GBPJPY became obvious, the bulls were well sharpened. The buyers traded price moments from 150.970 to 166.700 in the key zone before the sellers interrupted. At this point, the buyers were also unable to make a break beyond the 166.700 significant zone. This significant zone happens to be the most reacted to in 2022 as we get to see the currency pair consolidating. The market began consolidating following a bullish hangout near the 166.700 key zone.
Not until the buyers regained strength did we get to see a breakout beyond the 166.700 key zone. The buy traders have made further advancement as we see the price making a pullback below the 169.450 key zone. The MACD (moving average convergence and divergence) shows that the buying vigor has reached its climax as sellers now begin to halt price movement upward. The RSI (Relative Strength Index) has crossed for a selling indication on the daily chart.
The sellers are closing the price momentarily downward, but the RSI is still pointing towards a negative gradient. The MACD is also crossing below the 0.00 level as we anticipate a price pullback close to the 166.700 key zone.
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