GBPJPY Analysis: Market Reverts Upward As Price Makes A New Low At Discount Zone
GBPJPY reverts upward as the price makes a new low in the discount zone. The market has been bullish since the beginning of the year. The market might continue its bullish trend until the end of this year. The RSI (Relative Strength Index) has revealed that the market’s bullish trend is about to resume as it revealed that GBPJPY is already oversold.
GBPJPY Significant Zones
Demand Zones: 176.310, 166.000
Supply Zones: 188.760, 191.990
The low formed at 155.350 remains the lowest swing low this year. Subsequent rallies in fractals after the formation of the swing low brought about the ongoing overall bullish trend. The sudden expansion from the discount zone in February 2023 led to the formation of a bullish order block around the 160.00 price level. Following the retraction of the price at the previous resistance at 166.00, GBPJPY returned to the bullish order block.
In March 2023, GBPJPY retracted from the bullish order block around 160.000 as the bullish trend resumed aggressively. Further expansion brought the price to a new high of 172.300. However, the 172.300 high was barely valid for two weeks as the price continued its aggressive rally. Following several invalidations of the previous highs, GBPJPY made a significant retracement at the 184.00 price level. After a retest at the discount zone, the bullish trend resumed as the price formed another swing high at 186.760.
The market’s trading range currently lies between the 176.310 and 186.760 price levels. The price eventually reverted to the upside after hitting 79.0% of the trading range. Following the invalidation of the four-hour diagonal resistance, GBPJPY is expected to keep expanding upward.