What’s Flowing: GBPJPY ShortThe GBPJPY pair has confirmed a strong bearish trend as it continues to reject key resistance levels and push lower. Recent price action indicates sustained selling pressure, with the pair moving into a lower trading range.
Key Observations:
1. Trend Analysis:
• The pair has broken below critical support zones at 193.95 and 191.45, signaling further downside potential.
• Momentum indicators reflect increased bearish activity, with lower highs and lower lows dominating the structure.
2. Bearish Targets:
• Immediate support lies near 188.94, followed by potential extensions toward 186.43 and 183.93 if the downtrend persists.
3. Risk Management:
• Stop Loss: Place stops above 191.45 for a balanced risk-to-reward setup.
• Take Profit: Scale profits incrementally at key levels, focusing on 188.94 and beyond.
Market Context:
The bearish movement aligns with broader risk-off sentiment, favoring safe-haven currencies like the JPY. Traders should remain vigilant for any retracements or unexpected macroeconomic shifts impacting the GBP or JPY.
Stay tuned for midweek updates as we monitor potential continuation patterns and emerging opportunities.
