GBPJPY Price Analysis – June 19
The market opened today with a bullish candle on the daily chart, the price is moving towards $139 level. Increase in the Bulls’ pressure may lead to a further increase in the GBPJPY price that may reach $139 level.
Supply levels: $138, $141, $143
Demand levels: $135, $130, $127
GBPJPY Long-term trend: Bearish
On the long-term outlook, GBPJPY is bearish. The pullback that happened on June 03 to retest the broken level of $138 could not go beyond the level. The price was resisted at the mark. A bearish reversal candle pattern formed called Tweezer top; this pattern triggered the resumption of bearish movement towards $135 demand level. The Bearish pressure increased and the mark was reached.
The Bearish pressure is getting weak as the bearish candle that placed the price at $135 level has turned to hammer on June 18; there is a tendency for the price to reverse at the demand level of $135. However, GBPJPY retains its trading below 21 periods EMA and 50 periods EMA, with an increase in the distance between the price and the EMAs which is a sign of the increase in the Bears’ momentum. The Stochastic Oscillator period 14 is below zero levels and its signal lines pointing up to indicate a buy signal.
GBPJPY medium-term Trend: Bearish
On the medium-term outlook, GBPJPY is bearish. The pair was bullish last week on the 4-hour chart. When the price reached the supply level of $138, the bullish strength was exhausted and the price observed a short consolidation at the mark. On June 12, the Bears resumed their bearish movement and the price descended to the demand level of $135. The bullish engulfing candle formed at the level indicates price reversal pattern.
Meanwhile, the Stochastic Oscillator period 14 is at 50 levels and the signal lines pointing upward to indicate a buy signal.
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