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GBP/JPY Price Analysis: Bullish above, bearish below

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  • GBP/JPY is showing signs of exhaustion on the daily time frame.
  • The bears will be keen on price action below the trendline for a test and close below the current support structure. 

Following a Doji candle on the daily time frame as the price heads towards a long-term dynamic resistance line, bears are setting their sights on a weekly downside target and a confluence with the weekly 21 moving average. 

On the other hand, if bulls can hold above the current support structure, a subsequent rally could occur from the dynamic support line for a look at bearish commitments at the counter trendline from a weekly basis. 

Monthly chart

GBP/JPY Price Analysis: Bullish above, bearish below

Weekly chart

GBP/JPY Price Analysis: Bullish above, bearish below

While price is below the dynamic resistance line, there is scope for a break and retest of the current support structure before a follow-through to hunt down the weekly support structure.  

It is essentially a matter of bullish above or bearish below with high volume node targets either side.

The point of control since the late Jan 2018 bearish channel's formation is located at 145.05, a keen target for the bulls.

Daily charts, scenario 1

GBP/JPY Price Analysis: Bullish above, bearish below

Scenario 2

GBP/JPY Price Analysis: Bullish above, bearish below

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A bearish divergence RSI was seen on the 4 hour chart...
If the market will clearly break the weekly structure and the monthly trendline, intend to set a nice long order according with Plancton's strategy.
GBPJPY on the daily chart has recently broke and perfectly retest a weekly structure, Market is now approaching another weekly resistance that is also close to a monthly discending trendline
The Brexit chaos will definetely beat down market confidence on pound sterling,

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