GBPJPY Sellers are Getting Stronger

GBPJPY Analysis – August 19

GBPJPY sellers are growing stronger by the day. The buyers rode the market back up after an initial setback. The 167.810 resistance acted as a barrier to halting the increase in the market. Since then, the market has been in an up and down movement. In that motion, the buyers are gradually losing their influence in the market.

GBPJPY Key Levels

Resistance Levels: 167.810, 164.000
Support Levels: 153.280, 159.680

GBPJPY Long-Term Trend: Bearish

The sellers have been persistently tugging at the price since the day the price broke out from below the 159.680 key level. The sellers immediately reacted to overturn the market around the 164.000 key level. The price dropped but bounced off 159.580, now acting as support. However, a rejection of the price led to a fall back to 159.680 and even further drops below it. GBPJPY was able to recover its bullish fervour early and rose back upward.

Another strong bullish display sees the price rise again to challenge the 167.810 supply line. Once again, it worked in favour of the sellers. Even though the buyers are trying hard to keep up, they are losing momentum and forming a descending triangle pattern. This means sellers are getting stronger. As the price undulates downward, the Parabolic SAR (Stop and Reverse) has more dots above the daily candles to show bearish dominance.

GBPJPY Short Term Trend: Bearish

On the 4-hour chart, it is clearly seen that once again, GBPJPY is using the 159.680 demand level as support. But it is also expected that if the strain keeps increasing, the support might yield and allow a drop below it. The ATR indicator on the daily chart shows that market volatility has increased as the market is tapering downwards, but it is quite steady on the 4-hour chart. GBPJPY is likely to drop to 153.280.

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