GBPJPY took a massive downward hit after the tax cut rate news broke. After the dump, we are anticipating the market to rebound towards the level previously it fell from. Market is forming higher highs and higher lows and is expected to break the resistance level and continue correcting the down move.

The descending trendline is broken out for buys. Therefore, we have an added confirmation for the bullish momentum.

The retracement level of 61.8% is in confluence with the support level.

EMA 50 is bullish now and is retesting the current price action right now. That being said, there is a potential for the market to tap the support and make the EMA 50 invalidated.

RSI is at 48 which is the bearish region. We need to reach the neutralized levels at the 50 level in order for the confluence to take place along with the support level. Or we can wait for the market to form a bullish divergence at the support level.

160 is a very level for going long on the pair.

Waiting for GBPJPY longs at the level

Oct 06 2022

Take Profit +3.30%

Holding time 2d4hr

160.329

Entry price

165.619

Take profit price