According to our analysis published on 6th August, we showed bearish conditions on Great Britian Pound versus Japanese Yen on the basis that the current market trend might be the continuation of our bearish rally due to the weakness of pound and strength of king dollar while on the other hand a slight break above our previous daily high i.e 153.40 wouldve made GBPJPY run on parallel footing with USDJPY for as we know that the JPY pairs are mostly riding in the same direction. So 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 we explained that it had already started to move towards exponential moving average 50 and 200 but a closing below daily exponential moving average 50 and intraday moving averages had got us the confirmation of bears taking the orders now.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From current market scenario GBPJPY has taken an exit from our ichimoku cloud in daily while reversing from our upper trend line i.e the resistance 153.365 and provided us with a nice bearish closing. GBPJPY also broke the daily price action 152.64 which also has our exponential moving average 50 in daily on top now as well. The four hourly chart shows the pair is somehow stuck a bit inside the ichimoku cloud with more expectations of falling further but the structure in one hourly chart is showing signs of bullish reversal towards 152.653 before moving any further down. We also have our exponential moving averages 50 and 200 in one hourly chart crossing each other at the same aforementioned zone which might cause the continuation of bearish trend after a fractal dovish confirmation below the EMAs mentioned. 

GBPJPY

Aug 13 2021