Chapter 49 10/24 GBPJPY: Lows of Pullbacks Above Previous Lows Will Maintain Bullish Structure
Abstract: In the analysis of the GBPJPY, the overall structure remains in a bullish trend.
Fundamentals
It is expected that the price may continue to move in a bullish direction and may move towards the first resistance level at 183.99.
The first support level at 183.01 is considered important due to overlapping support and alignment with 23.60% Fibonacci retracement.
The second support level is 182.68, which is also important as it represents retracement support and coincides with the 38.20% Fibonacci retracement.
On the resistance front, the first resistance level is 183.70, which notably marks a swing-high resistance level.
The second resistance level is 184.24, which is important and also represents overlapping resistance.
Trading Recommendations
The GBPJPY continued to trade in a range-bound state without direction on Tuesday. The GBPJPY is currently in a downtrend after surging and is expected to fall back to the bottom of the 181.26 -180.73 range.
We expect the GBPJPY to test the bottom of the range for what is expected to be the last time as the time cycle progresses, after it returns to the bottom of the range again; after which, it accelerates higher and breaks out of the ascending pattern with the left shoulder at 184.02 as the high. But all of this assumes that the pullback low cannot be lower than the lows made on October 03 and July 28, and the pullback low cannot be lower than the previous level (178.03); otherwise, the bullish trend will be invalidated. It is recommended to buy the dips.
Trading Recommendations
Trading direction: Long
Entry price: 181.60
Target price: 185.00
Stop loss: 180.20
Deadline: 2023-11-06 23:55:00
Support: 182.07, 181.15, 180.28
Resistance: 183.02, 183.98, 184.39
