As you can see in the 4H chart, GBPJPY was in a sharp downtrend and after dropping significantly, price started to rise and broke the blue key resistance zone and fixed above it.
We are still not sure if price has started a new uptrend or it is just in a correction phase and willing to drop again.
The Blue area which is between 153.550 - 153.750 is an important zone for us:
If price can’t break this zone to the downside and gets rejected from it, we should wait for the red resistance level at 154.200 to be broken out and price closes a bullish confirmation candle above this level, to expect a growth first to the next major high at 154.700, and in the case of an upside breakout on this level, the next long-term target would be around 155.550
On the other hand, since price was in a sharp downtrend and if we assume this uptrend as a correction, price has retraced 61.8% of the previous downside move and is ready to drop again:
If the blue area broken out to the downside and price closed a bearish confirmation candle below this zone, we can expect a fall first to 153.280, and in the case of a downside breakout on this level, the next target would be the last major low at 152.400
We are still not sure if price has started a new uptrend or it is just in a correction phase and willing to drop again.
The Blue area which is between 153.550 - 153.750 is an important zone for us:
If price can’t break this zone to the downside and gets rejected from it, we should wait for the red resistance level at 154.200 to be broken out and price closes a bullish confirmation candle above this level, to expect a growth first to the next major high at 154.700, and in the case of an upside breakout on this level, the next long-term target would be around 155.550
On the other hand, since price was in a sharp downtrend and if we assume this uptrend as a correction, price has retraced 61.8% of the previous downside move and is ready to drop again:
If the blue area broken out to the downside and price closed a bearish confirmation candle below this zone, we can expect a fall first to 153.280, and in the case of a downside breakout on this level, the next target would be the last major low at 152.400
Note
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.