GBP/JPY Huge Supply Area - Be Careful!
Hello traders! Long Term analysis today. We will talk a bit about GBP/JPY as it is facing a potential reversion area.
Let's explain this idea:
🔸The price comes with a bullish trend for more than a year and a rise of approximately 25%. Do not forget to take into account this small detail. What we expect now is simply a price REACTION, not a trend reversal.
🔸After the break of the Descending Trendline, the price has practically not slowed down, and now it faces the first interesting supply zone. From here, we must pose two potential scenarios.
🔸The first is that the price does NOT find enough supply, and demand remains strong, which would lead to a break in the current zone and a subsequent movement towards the next zone at 164,000.
🔸The second is a rebound in the area and a bearish movement. The first target that we consider possible is the uptrend line of the last rise.
🔸 We believe that the second option is more feasible than the first since the trend needs a break, and if we also reduce the timeframe and go to the Daily chart, we see that there is a zone of confluence between the supply zone and the upper trend line. of the Chanel.
Let's explain this idea:
🔸The price comes with a bullish trend for more than a year and a rise of approximately 25%. Do not forget to take into account this small detail. What we expect now is simply a price REACTION, not a trend reversal.
🔸After the break of the Descending Trendline, the price has practically not slowed down, and now it faces the first interesting supply zone. From here, we must pose two potential scenarios.
🔸The first is that the price does NOT find enough supply, and demand remains strong, which would lead to a break in the current zone and a subsequent movement towards the next zone at 164,000.
🔸The second is a rebound in the area and a bearish movement. The first target that we consider possible is the uptrend line of the last rise.
🔸 We believe that the second option is more feasible than the first since the trend needs a break, and if we also reduce the timeframe and go to the Daily chart, we see that there is a zone of confluence between the supply zone and the upper trend line. of the Chanel.
Feragatname
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