GBPJPY: BEARISH OUTLOOK
Updated
The GBPJPY trend for the month of March has been quite bearish, with the pair experiencing a significant decrease in value from 164.505 to 158.549, representing a decline of approximately 550 pips. This decline has been consistent across both daily and H4 time frames, indicating that the bearish order flow is quite strong and sustained.
Despite this trend, there was a notable correction in the GBPJPY pair's trajectory, where the price experienced a deep correction to the 164.230 region, creating a double top pattern. This pattern drove the price further down to the 159.188 region, reinforcing the bearish structure.
As the bearish structure is still intact, there is a high probability that the pair will continue on its downward trajectory. However, there may be a temporary push towards the 161.419 region before experiencing further downward pressure. It is important to note that any upward break of the 2nd layer trendline would signal the possibility of buyers gaining control, which might be an indication of a potential trend reversal.
Based on this analysis, my short term target would be 159.750 value within the support zone while my medium term target is contingent upon the breaking of the support zone. If broken, I will be targeting the 158.362 liquidity zone.
Despite this trend, there was a notable correction in the GBPJPY pair's trajectory, where the price experienced a deep correction to the 164.230 region, creating a double top pattern. This pattern drove the price further down to the 159.188 region, reinforcing the bearish structure.
As the bearish structure is still intact, there is a high probability that the pair will continue on its downward trajectory. However, there may be a temporary push towards the 161.419 region before experiencing further downward pressure. It is important to note that any upward break of the 2nd layer trendline would signal the possibility of buyers gaining control, which might be an indication of a potential trend reversal.
Based on this analysis, my short term target would be 159.750 value within the support zone while my medium term target is contingent upon the breaking of the support zone. If broken, I will be targeting the 158.362 liquidity zone.
Note
First target at 159.750 hit
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