GBPJPY testing support zone
chart analysis:
Price of the GBPJPY is currently in a downward trend movement. I expect this will change in the longer term period.
3 different zones have been drawn:
- The green zone (Target zone) is the price forecast for our profit.
- The orange zone (S/R zone) was a zone that had not yet been breached. The price has passed the zone at the moment,
but I expect it to be important in the future.
- The red zone (Support zone) is an important part of the analysis. This zone has been respected several times in the months:
September 2016
February 2017
April 2017
June 2017
That's why there is an expectation that this can be an important turning point for the downward trend.
Trend lines are distinguished by numbering:
- Trendline 1 (black) is the ''base line'' of the current trend.The downward trend is clearly recognizable with
LH and LL (Lower heights and lower lows) since December 2017.
- T rend line 2 (blue) is the ''active line''. Price has passed the line once and then always respected.
- Trend line 3 (black) is the ''breakout'' line. If this trend line is passed, this may mean the beginning of a new trend.
Expectations:
I expect that after the outbreak of the S/R zone, the price will undergo a retest. If price drops after the retest, I expect it to fall to the support zone (red). This zone will also be tested and subjected to a retest. If the bulls take action and break trend line 3, then there will be a trendreversal. After that the price will strike through to the S/R zone and Target zone.
