GBPJPY started moving up previous week after a massive ripple down effect due to fundamentals. Now we anticipate the continuation of the uptrend.

- Market structure: Previously, GBPJPY broke the resistance at 152.75, which now is a support. This is the area GBPJPY is currently standing at. It continued to form HH’s and HL’s. The only hurdle we face is the daily resistance, which stands solid at 153.00. Once that is pierced, we are clear for the trend continuation upwards.

- Trendline: Earlier, descending trendline was broken and market validated it. Now, another descending trendline is forming with a W. If market pierces this, we are continuing up.

- Retracement: The broken resistance level, which has now turned support, is in confluence with the retracement level of 75-78.6%. This reflects the two-factor confirmation for going long at this support. It is to note that this retracement is minor one for the lower time frames.

- EMA's: EMA 50 had been broken earlier and is already tested twice. EMA 200 was broken recently and is retesting the market the first time, that too at the support region. This gives us a third confirmation to go long from this current region.

- RSI/CCI: Both oscillators are in a bearish region. RSI is at 49 and CCI at  -110. The over-sold conditions have still not been met. In order to confluence with other factors, we have to wait for RSI to turn above the 50 level region. CCI might take time to turn bullish. Given the fact that other factors confluence, having one oscillator can bullish can be an added factor for us to go long.

We are bullish on GBPJPY with 3 factor confirmations at the support level. If market breaks this current support, we will exit the market and re-enter at the lower support. Also, at this support, we might witness a fakeout as EMA 50 retest lies below the support. So we have to avoid selling before any confirmation arises.

Lets go LONG on GBPJPY

Aug 01 2021

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