In today’s review, we will consider the GBPJPY currency pair. The current formation of the pair suggests the development of an uptrend, which moves smoothly inside a large green channel.
SimpleFX GBPJPY Chart Analysis: November 24, 2021
For almost the entire September of this year, the price was in the lower green area, then dropped to the lower green wall and pushed off from it. Since October, the market has started to rise rapidly. In the second half of October, the price reached the upper green wall, but the bulls failed to break through it, so the market pushed off from the green line and began to move in a downward direction within the descending yellow channel.
Currently, the price has approached the upper yellow line and the resistance level of 154.07. There is a chance that this level will be broken, then the way to the upper green line will open for the bulls again.
However, if the bulls fail to break through the upper yellow wall, the price will continue to fall to the lower green line and the support level of 149.35. In the event of a break of this level, the bears may try to bring the market to the support level of 145.97, which is located on the lower wall of the yellow channel.
When confirming the first scenario, it is worth considering opening long positions, and if the market continues to form a bearish trend, then it’s possible to consider opening short positions and make money on sales.