GBPJPY Analysis: The market remains bullish as pending buy orders loom at a discount
GBPJPY remains bullish as pending buy orders loom at a discount. The overall market order flow is bullish. Recently, the market sank into a discount zone to execute buy orders, which got the market to its current local high of 172.130.
GBPJPY Significant Zones
Demand Zones: 163.030, 148.630
Supply Zones: 175.020, 172.130
A bullish order block was formed on March 18, 2022, as the price was delivered to the upside. This bullish order block later propelled the price to the upside on May 13, 2022. The swing high created during this period was invalidated as prices sought external liquidity to keep expanding upward. On September 23, 2022, GBPJPY entered the oversold region for the first time in the year to grab sell-side liquidity. From the oversold region, the price expanded upward to invalidate the previous high and eventually create a new high at the 172.130 price level.
The current trading range of the GBPJPY is defined by the 159.720 and the 172.130 price levels. At the discount array of the trading range, two bullish order blocks sit at the 61.80% and 78.60% Fibonacci retracement levels. The daily bullish order block at the 78.60% Fibonacci retracement level was formed on October 12, 2022. The refined daily bullish order block at the 61.80% Fibonacci retracement level was formed on December 2, 2022. Once the pending buy orders at either of the discount arrays are executed, the buy-side liquidity at the equal high (EQH) is most likely going to further expedite the continuation of the market’s uptrend.
GBPJPY is currently trading within an ascending trendline and a horizontal line across the previous highs on the four-hour chart. Price is expected to rise higher if the four-hour bullish order block at 61.80% or the daily bullish order block at 78.60% retracement level is reached.
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