GBPJPY Analysis: Price Soars Skyward As The Market Leaves The Oversold Region
GBPJPY soars skyward as the market leaves the oversold region. Given that the price is still making higher highs, the downtrend appears to have halted. Nonetheless, the 156.7200 support level and the 165.1000 price level’s swing high currently serve as the market’s trading boundaries.
GBPJPY Significant Zones
Demand Zones: 156.7200, 148.6300
Supply Zones: 163.0300, 172.1300
Price fell sharply into the oversold area after the breakout of the downside consolidation zone. The GBPJPY bears left the market at the price level of 148.6300, giving the bulls control of the market. Due to the rush of buy orders in the oversold area, the price sharply increased. The price exploded to the upside from the oversold area. Until the supply zone was reached at the 172.1300 price level, the expansion proceeded in fractals.
Around the 169.0800 price level, a lower high was formed as a result of the selling pressure at the supply zone. However, more price retests of the 169.0800 level suggested that the bears are now motivated to push prices lower. A Fair Value Gap (FVG) was generated with the quick growth from the 148.6300 support. Later, following the December 2022 crash, the FVG was filled downward. At the daily bullish order block, which was also at the 156.7200 support, GBPJPY made a U-turn. After the market’s rejection at the 79.0% Fibonacci retracement level, the bias has been bullish.
The order flow in the market is bearish on the four-hour chart. A shift in character happened after the rejection at the 79.0% Fibonacci retracement level. GBPJPY is anticipated to continue rising until it encounters the diagonal resistance.
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