GBPJPY Abounds in Long-Term Consolidation

GBPJPY experienced an impulsive bearish displacement in August 2023, driving the price down to the support level of 180.530. Since then, the market has shifted into a prolonged corrective phase, characterized by intermittent and short-lived trends.

Demand Levels: 194.790, 198.200, 206.160

Supply Levels: 188.880, 184.360, 180.530

The Stochastic indicator plunged from the overbought zone to the oversold region in under a month. During this period, the price sharply declined from 207.500 to 184.360. GBPJPY is still reeling from the effects of this aggressive bearish movement, as a significant amount of momentum was released.

.

Since the impulsive bearish swing in August, no subsequent trend has maintained its strength or duration as before. A gently sloping parallel trendline now frames the consolidation, marking the range-bound behavior of the pair.

A closer inspection of the daily chart reveals that the range is composed of transient trends, with greater clarity on the 4-hour timeframe. The latest bullish move has followed a short-term trendline up to a major higher timeframe resistance, suggesting that a reversal could be imminent. The best forex signal Telegram channels may now shift their focus towards a potential breakout or reversal to capitalise on upcoming market moves.

.