GBPJPY Finally Tests the Bearish Order Block

Market Analysis – February 3

GBPJPY has ascended to test a resistance trendline. A rejection candle formed as the market tested the daily bearish order block. The Bears are likely to seize the market with sell orders.

GBPJPY Resistance Level

Supply Level: 164.50, 168.0 171.80
Demand level: 160.80, 156.00, 150.00

GBPJPY Long-term Trend: Bearish

GBPJPY’s market structure turned bullish after the price dipped into an oversold region. The Stochastic showed the market was oversold at 156.00. Higher highs and lows formed till the supply level of 171.80 was hit. The resistance at 1712.00 caused a failure swing on the daily chart. The Stochastic was already oversold, hence a lower high formed below 168.00. The market got trapped in consolidation afterward. The market bounced back and forth between the 168.00 and 164.50 significant zones.

A bearish displacement delivered the market from the range between the 168.00 and 164.50 significant zones. The support level of 156.00 was tested in January. The second test of the support level in January led to a bullish shift in market structure. A double-bottom chart pattern was used to engineer a bullish reversal. The market is currently overbought, as indicated by the Stochastic.

GBPJPY Short-term Trend: Bullish

The market is ascending in the lower time frame. The higher timeframe resistance is expected to cause a bearish reversal on the lower timeframe. The price is likely to decline to 160.80.

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