GBP/JPY analysis for March 26, 2021
Looking at the chart on the weekly time frame, we see that this week has been very turbulent for this couple. We had a drop to 148.40 and then after that ski up to the current 150.90. Consolidation is still around Fibonacci 38.2% level at 150.70. For now, the GBP/JPY pair finds support, and we can expect that this is currently an accumulation before the next continuation to higher levels.
Following the moving averages, we see that they are far on the bullish side, and for now, they are supporting the GBP/JPY pair. A stronger break above this zone pushes the GBP/JPY pair towards 155.00.
On the daily time frame, we see that the GBP/JPY pair finds support at 148.50, often where we had a previous accumulation before jumping up to 153.00. The pair is making a potential FLAG pattern which is a sign that we will see a continuation of the bullish trend. Today’s candlestick tests the moving averages of the MA20 and EMA20, which have been good support for the couple on the bullish road so far. For the bearish scenario, we need a lower high on a smaller time frame to notice a change in the trend.
On the four-hour time frame, we use Fibonacci retracement levels, and based on that, we see that the GBP/JPY pair reached 61.8% levels at 151.00. Since the bullish trend is, we can expect it to continue towards the 78.6% level at 151.70. The GBP/JPY pair again gets support for moving averages, especially by crossing the MA50, and for additional support, the MA20 and EMA20 need to make a break above the MA50 line. If the pound weakens support, we look for the first one at 50.0% Fibonacci level at 150.50. A deeper retreat brings us to a psychological level at 150.00.
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