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- 1 GBPJPY H4(4 Hours) Chart Analysis – Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
- 2 GBPJPY H1(1 Hour) Chart Analysis – Key Resistance Zone, Bearish Divergence
- 3 Technical Analysis & Forecast Summary
- 4 Traders Academy Club - Learn How Trader Earns! VIP Membership Club for Traders by Vladimir Ribakov Traders Workshop - For Real Success - You Need To Learn From The Best! Complete Trading School by Vladimir Ribakov Trading Tips
GBPJPY H4(4 Hours) Chart Analysis – Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
On the H4 chart, we could see that the price which was moving lower has created lower lows based on the MACD indicator which we may consider as a sign of gaining momentum towards the bearish side. Also, we had a strong support zone and the price which was moving lower has broken below this and held below it. After the breakout this strong support zone is acting as a strong resistance zone for us. Currently the price which is moving higher has reached this strong resistance zone and is bouncing lower from in this zone. Until this strong resistance zone holds I expect short term bearish moves to happen here. In addition to this, the price has created a bearish hidden divergence between the first high that has formed at 166.330 and the second high that has formed at 163.053, based on the MACD indicator, which we may consider as evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and see if we can find evidences supporting this short term bearish view.
Looking at the H1 chart, we could see that, we have a key resistance zone that has formed based on the 61.8%(163.698) Fibonacci retracement level of the strong bearish move and the 100%(164.423)Fibonacci expansion level of the first wave of the correction. The price which was moving higher has reached this zone, respected it and is bouncing lower from this zone. In addition to this, we had a bearish divergence that has formed between the first high that has formed at 162.681 and the second high that has formed at 163.952 based on the MACD indicator, we may consider this as evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view. So based on all this, until the key resistance zone holds my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
GBPJPY H4(4 Hours) Chart Analysis
- Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
GBPJPY H1(1 Hour) Chart Analysis
- Key Resistance Zone, Bearish Divergence
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