- GBP/JPY is bearish while above the downtrend.
- The bulls will have to reach the back of the downtrend and break the horizontal resistance at 163.50 thereafter.
He GBP/JPY remains bullish on the longer-term outlook, but is currently being offered towards trend line support, as will be seen below.
GBP/JPY daily chart
The price is in an uptrend, and the M formation could serve as the basis for the bulls to go long the front of the trend line again. It is a reversal pattern that could see price above the neckline. However, that is not to say that there will not be more bears to come in the next few days in the first place.
GBP/JPY 4-hour chart
The bearish wick of the previous 4 hour candle could be completed in the next session.
GBP/JPY 15 minute chart
Price is bearish on the downtrend and a filling of the 4 hour wick will mitigate a price imbalance on the 15 minute chart for a retest of the 163 level. Bulls will have to break behind the downtrend and break resistance horizontal of 1635.0 thereafter.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
