GBP pairs across the board, are bullish on the higher time frames of weekly and monthly.

- Market structure: GBPJPY still hasn’t breached its resistance to further move up. Unless the resistance level of $143.50 is breached, we might see a bearish leg towards support.

- Trendline: Descending trend line is has shaped up. We reckon market testing this trend line as resistance and make a bearish leg. Also, the trend line is in confluence with resistance level. Unless the resistance and trend line are broken, we would continue looking for shorts.

- Retracement: We are at a golden level of bearish retracement zone of 75- 78.6, with the confluence of resistance level and descending trend line, at the zone of 143.25-143.50.

- EMA'S: EMA 200 is below the current market, where as, we are reaching the EMA 50 level on the upper side for a test. This EMA 50 will be conferencing with 3 other confirmations of resistance zone, descending trendline and golden retracement levels.

- RSI/CCI: RSI is still below 50 levels, which validates upcoming bearish leg.

CCI is still negative which confers that both oscillators are still responsive towards sells.

- Market structure: The market structure is similar to daily. Daily and H4 resistances over-lap on two major time frames, which strengthens a resistance.

- Trendline: Descending trend line has been pierced but the structure hasn’t confirmed us for the bullish setup. Unless the second descending trend line is not breached, we will avoid buying and look for shorts at the resistance. As mentioned earlier, we anticipate GBPJPY rejecting the 2nd descending trend line.

- Retracement: We are at a golden level of retracement zone of 75- 78.6, with the confluence of resistance level and descending trend line, at the zone of 143.25-143.50, as the case with daily.

- EMA'S: EMA’s on H4 have a death cross on the bearish side. We are approaching towards the test of bearish EMA 50. This EMA 50, confluences with resistance, descending trend line and golden retracement levels.

- RSI/CCI: RSI and CCI both are on the buying side currently. With this difference of oscillators depicting a buy position, we would wait for either a over-bought situation, which, we might not be able to get given we already have 4 confirmations for sells, and only oscillators portraying a bullish bias.

GBPJPY shorts from 143.25-50

Jul 09 2021