#GBPJPY @ 165.718 The breakout of a VCP formation has strengthened the pound bulls. (Pivot Orderbook analysis)
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- The breakout of a VCP formation has strengthened the pound bulls.
- A bull cross, represented by 20-and 50-EMAs indicates more upside ahead.
- A shift in the bullish range by the RSI (14) has triggered an upside momentum.
The pair currently trades last at 165.718.
The previous day high was 166.32 while the previous day low was 164.89. The daily 38.2% Fib levels comes at 165.78, expected to provide resistance. Similarly, the daily 61.8% fib level is at 165.44, expected to provide support.
The GBP/JPY pair has displayed a short-lived pullback after a sheer downside move to near 165.10 in the Asian session. On a broader note, the asset is oscillating in a narrow range of 164.89-166.31 for the past two trading sessions.
The asset is oscillating in a 25% range from the 52-week high, which fulfills the basic criterion of volatility contraction pattern (VCP) formation. A textbook traced breakout of a VCP after giving a close above 164.00 with an above-average tick size is hinting at a dream rally for the pound bulls. Now a test of the breakout zone near 164.00 will create a ‘test and run’ buying opportunity for the market participants.
A bull cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at 163.00 has strengthened the pound bulls.
Also, the asset is auctioning above the 200-EMA at 160.00, which indicates that the long-term trend is favoring bulls.
Adding to that, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which dictated that upside momentum has been triggered.
A test of VCP at 164.00 will create an optimal buying opportunity, which will drive the asset towards June 21 high at 167.83, followed by the psychological resistance at 170.00.
On the flip side, the yen bulls will take the driving seat if the asset drops below the August 2 low at 159.45, which will drag the asset towards May 25 low at 155.60. A slippage below the latter will send the cross towards January 24 low at 152.91.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 165.66 at the time of writing. Pair opened at 165.8 and is trading with a change of -0.08 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 165.66 |
| 1 | Today Daily Change | -0.14 |
| 2 | Today Daily Change % | -0.08 |
| 3 | Today daily open | 165.80 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 162.37, 50 SMA 163.03, 100 SMA @ 162.9 and 200 SMA @ 159.6.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 162.37 |
| 1 | Daily SMA50 | 163.03 |
| 2 | Daily SMA100 | 162.90 |
| 3 | Daily SMA200 | 159.60 |
The previous day high was 166.32 while the previous day low was 164.89. The daily 38.2% Fib levels comes at 165.78, expected to provide resistance. Similarly, the daily 61.8% fib level is at 165.44, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 165.02, 164.24, 163.59
- Pivot resistance is noted at 166.45, 167.1, 167.88
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 166.32 |
| Previous Daily Low | 164.89 |
| Previous Weekly High | 162.65 |
| Previous Weekly Low | 160.90 |
| Previous Monthly High | 163.99 |
| Previous Monthly Low | 159.45 |
| Daily Fibonacci 38.2% | 165.78 |
| Daily Fibonacci 61.8% | 165.44 |
| Daily Pivot Point S1 | 165.02 |
| Daily Pivot Point S2 | 164.24 |
| Daily Pivot Point S3 | 163.59 |
| Daily Pivot Point R1 | 166.45 |
| Daily Pivot Point R2 | 167.10 |
| Daily Pivot Point R3 | 167.88 |
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