The GBP/JPY currency pair, on the H4 chart, was on an upward path from the middle February. The buying pressure continued until a top was reached at 148.572 on the 1st of March. Sellers found the price attractive at that levels and the market broke through the 15 and 34 Simple Moving Averages, forming a bottom at 146.591. This might prove to be a critical support level. The Momentum Oscillator also broke the zero baseline, confirming the weakness of demand in the market.
After breaking through the 15 and 34 Simple Moving Averages, buyers tried to pull the market up and the price touched the 15 Simple Moving Average before seller again took control. If supply continues to overwhelm demand and the critical support level at 146.591 is broken, then three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 146.591 and dragging it to the top of the strong bearish candle at 147.688, the following targets may be calculated. The first target can be anticipated at 145.912 (161.8%). The second price target can be projected at 144.815 (261.8%) and the third and final target might be expected at 143.040 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the GBP/JPY currency pair will remain bearish.
After breaking through the 15 and 34 Simple Moving Averages, buyers tried to pull the market up and the price touched the 15 Simple Moving Average before seller again took control. If supply continues to overwhelm demand and the critical support level at 146.591 is broken, then three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 146.591 and dragging it to the top of the strong bearish candle at 147.688, the following targets may be calculated. The first target can be anticipated at 145.912 (161.8%). The second price target can be projected at 144.815 (261.8%) and the third and final target might be expected at 143.040 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the GBP/JPY currency pair will remain bearish.