GBPJPY Analysis: Price Sets To Break Above Diagonal Resistance
GBPJPY is about to break through the diagonal resistance to the upside. Following the multiple retests of the daily bullish order block (Daily +OB), the price sets to head upward as it creates a lower low above the order block. However, the market’s environment is a ranging one, as the price is neither ascending nor descending in fractals on the higher timeframe.
GBPJPY Significant Zones
Demand Zones: 148.000, 142.700
Supply Zones: 179.900, 163.700
According to the MA Cross, the market has gone lower into the consolidation range. Towards the end of October 2022, the price rallied into the premium to create a local high at the 172.100 price level. The high created at the end of the rally marked the swing high of the current trading range of the GBPJPY as well as the beginning of the diagonal resistance. This diagonal resistance might get invalidated as the buying pressure at the daily bullish order block overwhelms the market.
GBPJPY was in a consolidation phase before the emergence of the diagonal resistance in November 2022. On September 10, 2022, the price moved from external liquidity to external liquidity. Price broke the resistance (EQH) of the consolidation zone to grab buy-side liquidity before heading downward deep into an oversold region. The current trading range is defined by the low created at the 148.800 price level during the slump and the high created at October’s high. A failure swing emerged as the price bounced off the daily bearish order block (daily -OB) at the 166.300 price level.
The first reaction of price in the daily bullish order block created the long-term low on the four-hour chart. GBPJPY is not expected to break the long-term low before reaching the daily bearish order block just above the 165.000 price level.
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