was in an uptrend and recently had a significant drop. Marked on the chart we can see how GBPJPY
failed to make a higher high and failed to break resistance. After the breakout, from the uptrend, it retested the diagonal support level
. We can also view how GBPJPY
broke out on the RSI
indicator, demonstrating how it was oversold. With GBPJPY
we can see how it would react to making a correction upwards after this drop and then probably keep heading down. But If price does break the marked support level
then we can confirm getting in a short position for the downtrend.