Good Morning traders! Today we will analyze GBP/JPY, as it is rebounding from a critical zone and has great downside potential according to our analysis.
🔸First of all, we are going to talk a bit about the daily context as it is the basis of our vision.
🔸As we can see in this chart, the price bounced in the confluence zone between the upper part of the channel and the Resistance zone.
🔸During the last days, the price made a small upward movement, which if we see it on the 4H chart, coincides with a pullback to the short-term Ascending Trendline that was broken to the downside.
🔸We see a rejection in the area, so we can expect this to be the completion of the retracement.
🔸If so, we expect a breakout of the bearish corrective structure.
🔸The long-term target for the move is the Ascending Trendline seen on the daily chart above.
🔸First of all, we are going to talk a bit about the daily context as it is the basis of our vision.
🔸As we can see in this chart, the price bounced in the confluence zone between the upper part of the channel and the Resistance zone.
🔸During the last days, the price made a small upward movement, which if we see it on the 4H chart, coincides with a pullback to the short-term Ascending Trendline that was broken to the downside.
🔸We see a rejection in the area, so we can expect this to be the completion of the retracement.
🔸If so, we expect a breakout of the bearish corrective structure.
🔸The long-term target for the move is the Ascending Trendline seen on the daily chart above.