During Monday’s trading session, the GBPJPY pair continued its upward movement, hitting a peak of approximately 202.50, the highest level seen since 2007. Despite initial efforts by sellers to drive the pair down to 106.14, buyers managed to take control and push the pair to new cycle highs. The Daily Relative Strength Index (RSI) at 68 indicates continued bullish momentum, although approaching overbought levels suggests a potential correction. The Daily Moving Average Convergence Divergence (MACD) also shows ongoing bullish trends, but with rising green bars, there is a possibility of reaching its peak. Traders should take note that while the pair’s performance is strong and supported by key SMAs, indicators hint at potential corrections with support around 202.00 and resistance near 203.00.
Looking at the H4 timeframe for GBPAUD, a clear bullish break of structure is evident, driving prices to a high of 1.93440 before retracing. Currently, the price is expected to bounce off the drop-base-rally demand zone highlighted on the chart, especially with the formation of a QMR pattern within that area. The argument for GBPAUD leans towards a bullish sentiment.
Analyst’s Expectations: Direction – Bullish, Target – 1.91006, Invalidation – 1.89556.
On the H4 timeframe chart for EURGBP, an initial sweep of sell-side liquidity is seen from the highlighted arrowed line, followed by a break of structure. Utilizing Liquidity Inducement Theorem techniques, it is anticipated that price will retrace enough to clear liquidity once again from the induced low. If the price breaks below the trendline support of the ascending channel, a short entry is likely.
Analyst’s Expectations: Direction – Bearish, Target – 0.84279, Invalidation – 0.84800.
Within the GBPCAD daily timeframe pivot zone, a bullish breakout of a triangle pattern on the 4-hour timeframe is observed within the demand zone. This breakout indicates increased bullish participation in the market, signifying that buyers are taking control.
Analyst’s Expectations: Direction – Bullish, Target – 1.73685, Invalidation – 1.72873.
The technical analysis of GBPJPY, GBPAUD, EURGBP, and GBPCAD provides valuable insights for traders looking to capitalize on potential market movements. By carefully studying the charts and indicators, traders can make informed decisions to optimize their trading strategies and maximize profitability.