A double top has been formed on GBPJPY at the resistance level.

GBPJPY has been bearish since last month. The bearish confirmation was visualized with the formation of lower lows and lower highs. The trend is now bearish on daily and h4. Market has broken the major support level, which has now turned resistance. The price at this resistance is 160.50, where we will see if we print any bearish candle for eg. pinbar or an engulfing candle. Market is about to hit the major resistance on the pair.

The retracement zone of 61.8% and 75% is in confluence with the resistance level along with the bearish trend.

EMA 50 is also bearish and we see a retest of it at the resistance level, which has formed a confluence for the drop down. 

RSI is at the 62 level, which is the bullish region. We need to wait for it to either fall below the 50 level mark or head upwards in the over bought region in order to form a divergence of some sort.

Double top with GBPJPY

Jan 18 2023