GBP/JPY appears to be in a potentially bearish setup after recently testing resistance. The chart shows that price has formed a significant consolidation zone with clear upper and lower boundaries marked by the red horizontal lines. After making a recent high, the price seems to be struggling to break above the upper resistance zone highlighted by the pink box. The long downward-pointing red arrow marked on the chart is our highest probability move that we anticipate right now.
Given the recent price action and failure to establish new highs above resistance, the higher probability move is likely downward. This bearish outlook is supported by the apparent double top formation near the resistance zone and the pronounced selling pressure that has emerged after testing these levels. Traders should watch for a potential breakdown below recent support levels, which could accelerate the downside move toward the lower boundary of the range as indicated by the arrow's trajectory.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Given the recent price action and failure to establish new highs above resistance, the higher probability move is likely downward. This bearish outlook is supported by the apparent double top formation near the resistance zone and the pronounced selling pressure that has emerged after testing these levels. Traders should watch for a potential breakdown below recent support levels, which could accelerate the downside move toward the lower boundary of the range as indicated by the arrow's trajectory.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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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.