Good morning traders! This is our analysis on the GBP/JPY pair.
First of all, the answer to the title of the post is that nobody is certain if the price will have a bullish or bearish behavior! But what we can do is establish what decision we will make based on whether certain behaviors occur that put the scenario and the odds in our favor.
With that said, let's move on to the analysis:
🔸First, we see the clear and marked uptrend on the daily chart. Indisputable. Higher highs and lows within a bullish channel.
🔸What has generated many doubts in recent weeks is the recent behavior of the price, quite choppy remaining in a range, but this happens because the long-term chart is not taken into account and we focus on low temporality charts. ALWAYS look at the big picture.
🔸The current consolidation process, we personally choose NOT to trade within it. We are expecting one of the following two behaviors:
🔸Bullish Scenario:
In case we see a bullish break of the resistance zone, we will wait for a correction or retest to look for a trade towards the next resistance zone.
🔸Bearish scenario:
In case we see a bearish break of the Support zone, we will wait for a correction or retest to look for a trade towards the Ascending Trendline or the next support zone.
First of all, the answer to the title of the post is that nobody is certain if the price will have a bullish or bearish behavior! But what we can do is establish what decision we will make based on whether certain behaviors occur that put the scenario and the odds in our favor.
With that said, let's move on to the analysis:
🔸First, we see the clear and marked uptrend on the daily chart. Indisputable. Higher highs and lows within a bullish channel.
🔸What has generated many doubts in recent weeks is the recent behavior of the price, quite choppy remaining in a range, but this happens because the long-term chart is not taken into account and we focus on low temporality charts. ALWAYS look at the big picture.
🔸The current consolidation process, we personally choose NOT to trade within it. We are expecting one of the following two behaviors:
🔸Bullish Scenario:
In case we see a bullish break of the resistance zone, we will wait for a correction or retest to look for a trade towards the next resistance zone.
🔸Bearish scenario:
In case we see a bearish break of the Support zone, we will wait for a correction or retest to look for a trade towards the Ascending Trendline or the next support zone.