GBPJPY has to form another top at the resistance level at the price of 159.66. This level needs to be validated by the price action in forming engulfing or a pinbar to give us an evidence of the shorts incoming. The trend on this pair is bearish with the formation of lower lows and lower highs.

The descending trendline may be retested at the resistance level from where it can be rejected by the price action. The ascending trendline can be broken out for sells after the rejection.

The retracement level of 61.8% is in confluence with the resistance level and the market can drop down towards the 0% where the support resides.

EMA 50 is also bearish with the EMA hovers at the resistance level and might be rejected at the top, in confluence with the technical factors of the trendline.

RSI is also in a bearish region. We need the market to hop back towards the 50 area region from where we can have a neautralization level of the RSI and the market heads up towards the resistance.

Double for the short sells

Feb 07 2023