GBPJPY → Bearish reaction to trend resistance

9 ott 2023

GBPJPY is forming a retest of the descending channel resistance, forming a post facto logical reaction to the mentioned zone. At the moment, the downtrend is playing a relevant role

Fundamentally, we are living a very unstable time. Geopolitics has been sounding too much lately. Fund after a small bullish correction gives signals to further weakening on the background of strengthening of the DXY , which also negatively affects the currency pair analyzed by us. The rebound from the resistance zone is formed and the price returns under the level of 181.96. Consolidation of the price below this area will form a bearish potential, which can quickly bring the price down to 179.46 or 177.4. Bears are showing strength at the moment. The price is between the moving averages, consolidation may last for some time, but in the long term continue the realization of the previously formed bearish signal.

Support levels: 180.9, 179,46
Resistance levels: 181.96

In the long term, I expect the rate to continue to decline towards these targets.

Regards R. Linda!