Be careful with this Resistance Zone on GBP/JPY
Good morning traders, today we bring you our daily analysis on the GBP/JPY pair, since it is approaching a very interesting area that it is necessary to take into account.
🔸The price has been in a bullish channel for several months, generating a clear rise, but with a very slow movement (we can compare the time it took to move in that price range in the previous downtrend).
🔸It is very close to the confluence zone between the Ascending Trendline and the Resistance zone.
🔸We will not take any position until the price reaches that level. Once that happens, we take two possible scenarios.
🔸The first is the bullish scenario, where an upward breakout occurs in this zone, and the price begins a bullish momentum towards the next resistance.
🔸And the second is the bearish scenario, where the price cannot penetrate the Resistance Zone and generates a downward movement to retest the bottom of the bullish channel.
🔸In both situations, we will wait for a confirmation in a lower timeframe to be able to make a decision.
🔸The price has been in a bullish channel for several months, generating a clear rise, but with a very slow movement (we can compare the time it took to move in that price range in the previous downtrend).
🔸It is very close to the confluence zone between the Ascending Trendline and the Resistance zone.
🔸We will not take any position until the price reaches that level. Once that happens, we take two possible scenarios.
🔸The first is the bullish scenario, where an upward breakout occurs in this zone, and the price begins a bullish momentum towards the next resistance.
🔸And the second is the bearish scenario, where the price cannot penetrate the Resistance Zone and generates a downward movement to retest the bottom of the bullish channel.
🔸In both situations, we will wait for a confirmation in a lower timeframe to be able to make a decision.