After a bearish impulse wave, GBPJPY experienced a retracement but has continued to form lower highs and lower lows, indicating a bearish trend. The market is expected to move downward towards the support level after breaking below the range. Currently, the market has formed a double top, which may further drive the price down.

The ascending trendline is close to breaking out for a sell, which will need to be validated by price action. The 61.8% retracement level coincides with the resistance level, making it a favorable selling point.

The EMA 50 is still maintaining a bearish direction and is likely to continue pushing the price down, adding to the bearish analysis.

The RSI is currently at 54 and needs to fall below the 50 level to confirm the selling pressure on the oscillator. While a short position may be considered at present, it is better to wait for the resistance to be retested before entering the short position

Double top setup for shorts

Mar 14 2023