GBPJPY Sellers Test the Market’s Resolve With Another Triangle Pattern

GBPJPY Analysis – August 12

GBPJPY sellers are testing the market’s resolve by repeating a recent trick of the descending triangle pattern. The bulls ensured the market did not go down after a similar challenge was posed in the market. However, the inability of the price to progress beyond the 167.810 resistance level has given the sellers another opportunity to influence the market.

GBPJPY Major Zones

Supply Levels: 164.000, 167.810
Demand Levels: 159.680, 161.650

GBPJPY Long-Term Trend: Bearish

The 159.680 price level remains a major benchmark level for the GBPJPY market. It kept the market below it for a long time. Soon after, the buyers got a breakthrough above it. It also helped keep the price above it. The sellers are agitated and have been working on plunging the market back below 159.680, which is now acting as a support level.

The use of a triangle pattern seemed to work till buyers found the strength to return above the key level. Three months have passed now and the bears are back to test the market’s resolve using a similar triangle pattern. The RSI (Relative Strength Index) line has been continually making lower highs and lower lows to show the progressive impact the sellers are making.

GBPJPY Short Term Trend: Bullish

The MA Cross (Moving Average) is making its crosses at a progressively downward slant to show the bearishness. However, in the short term, GBPJPY is set to push upward to 164.000, but it is not likely to rise beyond the upper border of the triangle pattern. This will mean the market will make a lower high. Currently, 161.650 is the support level of the market. If bears finally break it, they still have to contend with 159.680, and if they break through also, the market will fall hard.

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