The GBPJPY pair has been on an uptrend, reaching a high of approximately 202.50, the highest level since 2007. The Daily Relative Strength Index (RSI) indicates ongoing bullish momentum, but nearing overbought territory could suggest a potential correction. The Moving Average Convergence Divergence (MACD) also shows bullish momentum with rising green bars, although it may be reaching its peak. Despite the pair’s strong performance and position above key SMAs, indicators point to possible corrections with support around 202.00 and resistance near 203.00.
The far-left side of the chart displays a bullish break of structure, leading prices up to 1.93440 before undergoing a corrective move. The price is expected to bounce off the drop-base-rally demand zone, with a QMR pattern forming within the zone. Analysts expect a bullish direction with a target of 1.91006 and an invalidation level at 1.89556.
EURGBP on the 4-timeframe chart initially swept sell-side liquidity, followed by a break of structure highlighted in the chart. According to Liquidity Inducement Theorem (LIT) techniques, prices are likely to retrace to sweep liquidity once more. A short entry sentiment would be validated upon a break below the trendline support of the ascending channel. Analysts anticipate a bearish direction with a target of 0.84279 and an invalidation level at 0.84800.
Within the GBPCAD daily timeframe pivot zone, a bullish breakout of a triangle pattern on the 4-hour timeframe within the demand zone suggests increased bullish participation. This breakout signifies that buyers have gained control of the market. Analysts foresee a bullish direction with a target of 1.73685 and an invalidation level at 1.72873.
The forex market presents various opportunities and risks for traders to navigate. As seen in the analysis, each currency pair has its unique trends and patterns that provide insights for potential trading strategies. Traders should exercise caution and conduct thorough analysis before making any trading decisions to mitigate risks and maximize profits. By staying informed and adapting to market dynamics, traders can capitalize on opportunities and navigate challenges in the ever-changing forex market.