GBPJPY Analysis: Price Remains Between Two Important Levels
GBPJPY remains within the two significant levels of 172.130 and 162.330. For the past few months, GBPJPY has been finding it difficult to successfully break the range at which it fluctuates. However, the market has been providing opportunities for GBPJPY buyers and sellers within the range.
GBPJPY Significant Zones
Demand Zones: 155.350, 148.630
Supply Zones: 172.130, 162.330
Until September 2022, the price was consolidated at the 162.330 price level. On September 11, 2022, a double top formed, and the price swerved downward to break the neckline and the 155.350 support into an oversold region as indicated by the Stochastic indicator. The fall of price into the oversold region resulted from the market’s intention to grab sell-side liquidity. From the 148.630 price level, the GBPJPY buyers stormed the market with their buy orders, and the price rose aggressively to the upside. The aggressive rise in price led to the invalidation of the double top.
After the fifth wave, the price rallied from the 148.630 demand zone into the 172.130 supply zone. A failure swing (SMS) followed the bullish motive wave into the 172.130 supply zone, giving GBPJPY sellers the impression to go short. Price continued downward to create an equal high at 169.270 and then cleared the double bottom created on November 3, 2022. On the daily chart, either of the bearish order blocks might retrace the price or reverse the market completely to the downside.
The bearish order block on the four-hour chart will cause the price to retrace to the downside. However, should the price mitigate the order block, GBPJPY will rally until it reaches the 172.130 supply zone.
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