GPBPJY has been in a downtrend. Forming lower lows and lower highs. At the resistance level of 163, we see consolidation of prices being formed by pinbars and rejection candles. From here onwards, we see prices leaving the resistance level. Once it retests it, we will be looking to short GBPJPY till the next support. 

On the trendlines, we see a bearish penant being formed. The resistance trendline has been tapped and then from the support trendline, the prices have broken out for sells. Candles need to be validated by closing below the trendline. This is the reason, we are looking for a retest back at the resistance to go for a sell.

Currently, we see a bearish retracement level of 61.8%. This retracement level is in confluence with the resistance and has a high probability of a push down from this resistance. 

EMA 50 is bearish with market broken out for sells. We are waiting for another confluence of the retest at the resistance level. EMA 200 is still below the price action and needs to be broken out. Once its broken out for sells, we can further be confirmed for the bearish pressure. Until then, we see a range of prices between EMA 50 and EMA 200. 

RSI and CCI, both the oscillators are currently in a neutralized levels and have been hovering around the price. These prices are absorbed at the current neutarl levels of the oscillators. That being said, we might see a slight correction or a fakeout from the neutralize level. Then we will continue down with technical factors aligned with other factors.

The shorts at the resistance level are in confluence with few factors which converge with our strategy. This is why, we will be looking to short at the level and continune going down.

Trendline breakout sell on GBPJPY

May 02 2022

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