A fakeout on GBPJPY?
Vasl Capital
GBPJPY·
Apr 08 2023
We incurred a loss on the GBPJPY on our previous entry.
GBPJPY marked up from the support level priced at 163.57. As the market started its bullish course, the formation is yet still to be formed for the higher highs and higher lows, ultimately indicating the bullish trend pressure of the pair. That being said, we will look into the buys till the next resistance priced at 166, as the traffic on the left hand side is clear. We are looking at the retracement for another bullish wave.
The market seems to be faking out from the support and has bounced back up after the fall.
The descending trendline still needs to be broken out for buys and the candles have also validated the buys. The only validation remaining on the bullish side is the bullish structure. We have another extended descending trendline on the verge of being retested at the level. We can target the trendline as the profit area.
The retracement level of 61% is in confluence with the support level.
EMA 50 is almost transitioning from bearish to bullish, as this current running candle is about to break the EMA 50 towards the upper side. After the breakout of the candle, we can also take a position on the re entry of it.
RSI is at 51. We reckon the market to neutralize itself at the 50 level in order to align with the factors on the chart.
CONCLUSION: BULLISH