GBP/JPY is in a decisive zone at the moment. To analyse the market, let us discuss the Fibonacci and MACD Divergence perspective in today’s analysis.
On the 4Hr chart, we have a trend swing (Bullish) and a counter trend swing (Bearish). Now, let us draw the Fibonacci retracement tool from from the low to the top of the trend swing. The price took decent support from 23.6% (145.26) and 38.2%(144.07) retracement levels, showing the validity of the Fibonacci retracement tool mapped on trend swing.
The support zone between 88.6% and 99% is very important and less risky. This zone may also prove to be major support area. The invalidation level is the 100% retracement level present at 138.67.
We can see that a divergence pattern is visible on the MACD Oscillator signaling a potential bullish reversal or retracement ahead.
Image 4Hr Chart GBP/JPY
On the 1 Hour chart, we have a bullish and a bearish channel as shown in the image below.
The break of the trend channel resistance could signal a potential reversal as well.
Price is at a key break spot:
Image 1Hr Chart GBP/JPY
Many green pips,
Elite CurrenSea team
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