A crucial confirmation of this downward trend would be a clear break below the support level at 187.96, which marks the lows of March 11, along with the nearby 50-day Simple Moving Average (SMA). Such a break would likely lead to a further decline in GBP/JPY, possibly targeting the support near the 50-week SMA at 181.60.
Despite the current bearish outlook, it’s important to note that the overall price trend of GBP/JPY is still upward, as indicated by the rising peaks and troughs over the long term. This suggests that the current downward movement might be a correction within the broader uptrend.
However, if the price breaks completely below the bottom of the wedge, around 180.80-90, it would confirm a reversal of the long-term uptrend.
On the upside, a break above the recent highs at 191.32 would confirm the continuation of the dominant bullish trend, with potential targets at the resistance level of 195.88, which marks the highs of 2015. Despite the chart appearing overstretched, such a move remains possible given the overall bullish sentiment.
© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.
© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.