GBP/JPY 4H Chart Analysis:
1. Key Level at 0.78 Fibonacci Retracement
The blue marker at the bottom (190.650) represents a significant level where the market may find strong support. This level corresponds to the 0.78 Fibonacci retracement, which is often considered a potential reversal point during a downtrend.
2. Comparison of Moving Averages (MAs):
The red moving average is currently below the yellow moving average, indicating that the market is in a downtrend. However, if the price reaches the support level (0.78 retracement), we may expect a reversal or upward movement.
3. Future Market Outlook:
If GBP/JPY successfully bounces back from the 190.650 level, it is expected to move higher, potentially breaking through the 192.467 level. The green arrow drawn on the chart highlights the expectation of an upward trend.
4. Possible Scenarios:
Scenario 1: If GBP/JPY reverses from 190.650 (0.78 Fibonacci level), it could climb higher toward levels like 195.000 or beyond.
Scenario 2: If the market breaks below the 190.650 support, further downward movement could follow, indicating a continuation of the bearish trend.
5.My Recommendations:
When using Fibonacci retracement, wait for the market to show clear signs of recovery at the 0.78 level before making any trading decisions.
It’s crucial to monitor momentum indicators to confirm the trend reversal before entering the trade.
The blue marker at the bottom (190.650) represents a significant level where the market may find strong support. This level corresponds to the 0.78 Fibonacci retracement, which is often considered a potential reversal point during a downtrend.
2. Comparison of Moving Averages (MAs):
The red moving average is currently below the yellow moving average, indicating that the market is in a downtrend. However, if the price reaches the support level (0.78 retracement), we may expect a reversal or upward movement.
3. Future Market Outlook:
If GBP/JPY successfully bounces back from the 190.650 level, it is expected to move higher, potentially breaking through the 192.467 level. The green arrow drawn on the chart highlights the expectation of an upward trend.
4. Possible Scenarios:
Scenario 1: If GBP/JPY reverses from 190.650 (0.78 Fibonacci level), it could climb higher toward levels like 195.000 or beyond.
Scenario 2: If the market breaks below the 190.650 support, further downward movement could follow, indicating a continuation of the bearish trend.
5.My Recommendations:
When using Fibonacci retracement, wait for the market to show clear signs of recovery at the 0.78 level before making any trading decisions.
It’s crucial to monitor momentum indicators to confirm the trend reversal before entering the trade.
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Note
The best entry Gbpjpy
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