GBPJPY massively pumped towards the higher time frame resistances, which formed the pull down effect after tapping the monthly and weekly resistances. With the pull down on the pair, another minor resistance is formed at the 167 area, which we would be looking to short at, as the price action is also depicting the bearish momentum and move.

The ascending trendline has broken out for sells and has validated the market with the price action. That being said, another lower time frame breakout sell happens, thats a que for our confirmation.

The retracement level of 61.8% is in confluence with the resistance level. The level has a trickle down impact and can push the market down.

EMA 50 is also bearish at the moment and can take the retest at the resistance level if that happens, the confluence will be a strong foothold.

RSI is at 46. This needs to tap into the neutralized level at 50 and then, take a bounce down. 

The confluences formed on this pair for the short positions are really strong.

Shorts on GBPJPY from 167

Apr 27 2023