GBP/JPY Rejection from Resistance Zone GBP/JPY Rejection from Resistance Zone 🧱📌 | Bearish Setup In Play 🔻💹
📌 Technical Analysis Overview:
The chart illustrates a clear rejection from the resistance zone around 198.460, where previous price action formed a double-top pattern (🔴 red arrow). This suggests a strong supply area with selling pressure building.
🔍 Key Observations:
📏 Trendline Break:
The upward trendline (blue) has been decisively broken.
This break signals a loss of bullish momentum.
🧱 Resistance Zone @ 198.000–198.460:
Price tested this zone multiple times but failed to break above.
Acts now as a strong resistance zone.
🟠 Support Turned Resistance:
Former support has now turned into resistance (highlighted in blue text: "SUPPOT").
📉 Bearish Projection:
The projected path indicates a possible retest of the resistance zone before a sell-off continuation.
Target area: around 194.500, marked as “TAEGET FAXS” (typo: should be “TARGET ZONE”).
🔄 Possible Scenarios:
✅ Bearish Continuation:
If price rejects again near 198.000, expect a bearish move toward 194.500.
⚠️ Invalidation:
A strong breakout above 198.460 would invalidate the bearish thesis and may resume bullish momentum.
🔚 Conclusion:
The pair is currently under pressure with a confirmed break in trend structure. As long as price remains below 198.460, the bias remains bearish with a target toward the 194.500 zone. 📉👀
Gbpshort
GBP/USD Bearish Harmonic Pattern Analysis GBP/USD Bearish Harmonic Pattern Analysis 🐻
🔍 Chart Overview:
The GBP/USD pair is presenting a bearish reversal scenario driven by multiple technical factors, including a well-formed bearish harmonic pattern, resistance rejection, and trendline breakdowns.
📌 Key Highlights:
🔺 Bearish Rejections:
Red arrows highlight multiple failed attempts to break above key trendlines and the resistance zone around 1.37800–1.38000, signaling strong seller interest.
🦋 Bearish Harmonic Pattern:
A completed harmonic pattern (likely a Gartley or Bat structure) indicates a potential reversal zone aligning precisely with the resistance area.
Price has already started to react downward from the D-point.
📉 Breakdown Structure:
Price broke below a key ascending trendline (now acting as resistance).
A fresh lower high has formed, confirming bearish momentum.
📦 Support & Target Zone:
Major support area marked between 1.35124 – 1.35300, aligning with historical demand zones and fib levels.
Target is set at 1.35124, which is both the harmonic pattern's projected leg and a strong confluence support.
🟠 Reaction Zones:
Orange circles highlight previous reaction points where price either bounced or reversed.
These zones confirm key liquidity areas where institutional activity may be present.
📊 Conclusion:
GBP/USD is respecting a bearish harmonic pattern and showing multiple signs of reversal from the resistance zone. If current momentum continues, price is likely to move toward the 1.35124 target zone. A break below 1.36000 would strengthen bearish confirmation.
🚨 Trading Note:
Traders should monitor for follow-through bearish candles and volume confirmation before entering short positions. Keep risk-managed with stops above 1.37800.
GBP Analysis for Potential Buy or Sell Entry
Overview: We’re focusing on a POI (Point of Interest) zone where we expect potential price reactions. This POI zone represents a key support or resistance area, and it will determine whether we enter a buy or sell position depending on how the market price reacts to it.
Plan:
1. If the market price finds support at the POI Zone:
Look for confirmation signals (such as bullish candlesticks, break of recent highs, or volume increases).
Enter a Buy position targeting higher levels, aiming for a positive risk-reward ratio. Identify potential target levels based on previous resistance or Fibonacci extensions.
2. If the POI Zone fails as support:
Wait for the price to retrace back towards the POI zone, testing it as resistance.
Enter a Sell position targeting lower levels, especially if bearish patterns or momentum indicators confirm the move.
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Key Reminder:
Trading always involves probabilities, not certainties. No strategy is foolproof, and risk management is essential. Make sure to place stop-losses in appropriate positions to protect your capital, and remember that disciplined execution is key.
Weak currency vs weak currencyWhat are our targets for the GBP/JPY? This might all depend on Central bank intervention.
Last week the BoJ briefly intervened and now there is speculation that the BoE will follow through with similar measures to help prop up the pound, which has cratered in the past two days in response to the dismal economic outlook of the UK and new tax cuts from the government.