R.Linda Trading - forecast

GBPJPY → False breakdown on the background of distribution

FOREX forecast
💡Ideas For GBPJPY 🇬🇧🇯🇵

📈 GBPJPY → False breakdown on the background of distribution


GBPJPY is in the distribution phase after breaking the ascending triangle structure. Against the background of the November 2023 retest, there are not many chances to break 188.3 from the first time
The pound sterling both technically and fundamentally looks stronger than the Japanese yen. On the senior timeframe we see the formation of a sideways movement, which tells us about the neutrality of forces between buyers and sellers. In this case, it is acceptable to use a range trading strategy (trading from the range boundaries).

After breaking through the ascending triangle structure an impulse (distribution) is formed, the price has not yet tested the resistance of 188.3, which plays an important role. There is a high chance that the market will show a false breakout and a small correction. The key point of the correction is a test of the rising support line. If the line is broken, the price may head towards the mentioned target.

Resistance levels: 188.3, 188.66

Support levels: 185.9, 184.3

The most likely scenario is a false breakout followed by a correction to one of the above support lines, as the market currently has no potential for a resistance breakout.