Hi Traders! GBPJPY technical analysis and forecast post is here. As I do with every technical analysis post, multi-time frame analysis method will be applied in order to look for all the possible evidences that support my view on the current trading timeframe and the higher timeframe. The platform in which we perform this multi-timeframe analysis is on the MetaTrader4(MT4). You can find some useful tips and hacks about the MT4 platform here. We will start our analysis from the highest timeframe now which will be the daily chart here.
GBPJPY D1(Daily) Chart Analysis – Uptrend Line, Parabolic Sar, Key Resistance Zones, ADX Indicator
On the daily chart, we have a good uptrend line that has formed and the price which was moving lower reached this dynamic support, respected it, and is currently moving higher. The price which is moving higher has broken above the first key resistance zone formed by the 61.8% (136.506) fibonacci expansion level of the big wave and the 61.8% (138.198) fibonacci expansion level of the small wave and is holding above it. Price still has room higher towards the next key resistance zone formed by the 100% (140.973) fibonacci expansion level of the big wave and the 100% (142.176) fibonacci expansion level of the small wave. Based on the Parabiolic Sar we could see that the dots are below the price. In addition to this the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line), and the main signal line (silver line) reads value over 25, we may consider these as evidences of bullish pressure. Also, there are no evidences that show the current trend is over yet. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
GBPJPY H1(1 Hour) Chart Analysis – Bullish Trend Pattern
On the H1 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may expect a correction to happen and then further continuation higher. Currently, it looks like the correction that we were looking for happened in the form of consolidation and the price has broken above this consolidation. We may consider this as yet another evidence of bullish pressure. So based on all this, my view is bullish here and I expect the price to continue higher further.
Technical Analysis & Forecast Summary
GBPJPY D1(Daily) Chart Analysis
- Uptrend Line, Parabolic Sar, Key Resistance Zones, ADX Indicator
GBPJPY H1(1 Hour) Chart Analysis
- Bullish Trend Pattern
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