GBP/JPY Technical Analysis
Looking at the 30-minute chart, GBP/JPY is showing some interesting movements.
Trend Structure: After a period of consolidation, the pair broke out of a descending wedge pattern. The price tested the upper boundary near 195.602, which appears to be a key resistance level. We could see some retracement here before a continuation of the upward trend.
Fibonacci Levels: The retracement zones are well-defined using Fibonacci levels. The price may pull back to one of the key Fib levels, such as 38.2% (194.712) or 50% (194.718), before resuming its bullish momentum. A deeper pullback could reach 61.8% (194.352), which aligns with another strong support area.
Support and Resistance: Key horizontal support levels lie around 194.752, 194.250, and 193.832. These levels are marked by green zones on the chart. The price will likely test these areas if a retracement happens before potentially bouncing back up.
MACD Indicator: The MACD shows signs of weakening bullish momentum, with the MACD line starting to flatten. This could signal a short-term pullback, aligning with the potential Fibonacci retracement mentioned earlier.
Next Steps: If the price manages to hold above the 195.185 resistance level after a possible pullback, it could break through and target new highs, potentially testing 195.602 again and higher levels. However, a failure to hold these levels may lead to further declines towards the 193.832 support zone.
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