We published our analysis in terms of favouring the bears on 6th August with expectations that the current market structure in four hourly chart and daily should be considered the end of bullish correction of higher degree and as the pair failed to provide us with a fractal confirmation above 153.35-153.50 and reversed below 153.0, indicates that the exponential moving average 50 will be the bearish driving force for GBPJPY and make it land towards 61.8% and 50% fibb retracement levels. Today retail traders around the globe were expecting that strong data release from Prelim GDP q/q, Construction Output m/m, GDP m/m, Goods Trade Balance, Index of Services 3m/3m, Industrial Production m/m, Manufacturing Production m/m and Prelim Business Investment q/q would push pound higher but unfortunately the bulls would have to wait until the bearish correction under four hourly chart has been completed. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

We took the failure of GBPJPY to breakabove the aforementioned level and the neutrality of this supply and demand zone as a bearish reversal for the pair before any legitamate breakout at either ends. In four hourly chart it has already started to move towards exponential moving average 50 and 200 but a closing below daily exponential moving average 50 and intraday moving averages would get us the confirmation of bears taking the orders now. GBPJPY bullish momentum is being limited by the resistance provided in shape of our upper trend line at the levels mentioned above in our market forecast. The intraday moving averages 8,13,21 might become a temporary hurdle in terms of a minor degree of bullish reversal to the pair but ultimately we will be monitoring the markets move as a retest to our upper trend line followed by the continuation of our expected bearish rally.

GBPJPY PREPARING FOR A BEARISH CORRECTION

Aug 12 2021