The GBPJPY pair has risen from the support level of 163.70, indicating a bullish trend. However, the formation of higher highs and higher lows is still pending, which would confirm the bullish trend pressure. As the left-hand side traffic is clear, we will consider buying until the next resistance at 165, with the expectation of a retracement for another bullish wave.

The buy breakout has been validated by the candles and the descending trendline has also been broken. The only remaining validation for the bullish side is the bullish structure, and we can target the extended descending trendline as the profit area.

The retracement level of 75% coincides with the support level, which further supports the bullish trend. The EMA 50 is transitioning from bearish to bullish, and we can take a position on the re-entry of the breakout candle after it breaks the EMA 50 towards the upper side.

The RSI is currently at 49, and we anticipate the market to neutralize itself at the 50 level to align with the chart factors, after crossing the 50 level. In conclusion, the trend is bullish.

Bullish move to form an inverse head and shoulder

Apr 05 2023