GBPJPY Analysis: Price Returns To The Discount Region As The Market Recovers
GBPJPY returns to the discount region as the market recovers from overpriced territory. Per the RSI (Relative Strength Index) indicator, the price is moving out of the oversold area. Despite the signal causing a decline, it is unlikely that the daily chart will shift to a bearish market structure.
GBPJPY Significant Zones
Demand Zones: 155.3500, 148.6300
Supply Zones: 172.1300, 185.2400
The GBPJPY fell on December 20, 2022, as a bearish engulfing candlestick emerged. As a result of this perception, additional sellers entered the market for GBPJPY, ultimately leading to the attainment of the demand zone at 155.350. The bounce off the demand zone of 155.350 prompted the British pound to increase as it established greater highs in reaction. On February 13, 2023, a bullish order block formed at the commencement of the rise. The bullish order block formation triggered a surge, pushing the price to 166.0000 before the price entered the bullish order block again, a swing high formed at the 166.0000 price level.
Finally, on March 24, 2023, the GBPJPY moved back into the bullish order block. As buy orders filled at the bullish order block, the price sharply increased to the upside. The increase continued after the most severe retracement on May 11, 2023. The MA Cross indicates that GBPJPY is quite bullish. The current declining trend will probably soon come to an end. This is a result of the market’s overall bullish tendency. The retracement will end after the recovery period ends, and the bullish trend will likely continue.
The triangle pattern’s successful breakout to the downside suggests bears in the market. The Fair Value Gap (FVG) over the four-hour chart will continue to push the price lower. The decline in GBPJPY will persist until the daily bullish order block is reached.
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