GBP/JPY Market Analysis for Sunday Night OpenThe GBP/JPY chart shows a recent downtrend followed by a recovery as the price approaches a key resistance zone around 197.90 - 198.00. We can observe some consolidation and a potential reversal pattern, with the price creating higher lows, suggesting possible bullish momentum.
Resistance Zone (197.90 - 198.00): This area has acted as strong resistance recently, and a clear break above could signal continued bullish momentum. If the price breaks and holds above this level, we could see a rally toward higher resistance around 198.20 - 198.50.
Support Levels: Immediate support is around 197.50, and if the price fails to break above resistance, we may see a pullback toward this level. A breakdown below this support could lead the price to test the lower zones at 197.20 and 197.00.
Potential Price Action Scenarios:
Bullish Scenario: A breakout above 198.00 would confirm a bullish continuation, aiming for 198.20 - 198.50.
Bearish Scenario: If sellers take control and the price falls below 197.50, we may see a retest of support levels near 197.20 - 197.00.
Indicators: The MACD is currently positive, showing signs of bullish momentum, but it's essential to watch for any divergence or a possible crossover, which might signal a weakening in buying pressure.
Summary: For the open, I’ll be watching how the price reacts around the 197.90 - 198.00 resistance zone. A strong breakout would favor long positions, while rejection around this area or a break below 197.50 could open opportunities for shorts targeting the lower support levels.
