In my post earlier I described 2 models of the situation on GBP / JPY
1. Bounce from the channel's level / boundary (the model of the ascending movement)
2. Breakdown of the channel's level / boundaries and price fixing is lower (downward motion model)
Obviously, we see on the graph option № 2
I recommended looking for an input into the purchase from the retest...
The price is in the key zone near the strong mirror level of 147.500 which previously acted as both a resistance and as a support (the areas are marked on the graph) And also next to the lower boundary of the rising channel.
Options for the development of the situation:
1.The price will bounce off this zone that will be a signal for the purchase and continuation...
The price is close to the strong level of 111.00, which is supposed to act as a support without letting the price fall lower. This indicates an upward price correction to resistance level 112.13 which is also a 50% level of the previous downward momentum. From there it is worth looking for the entrance to sales
I see the price is not ready to stop trying to break through the level of 1.2082, in connection with which we can observe the formation of the figure "flag" (continuation pattern), which means that we can see another attempt of bulls to break the level of 1.2082. Soon this figure works until each next minimum is higher than the previous one.
If the price closes...