GBPJPY Weekly levels analysis

If we zoom out on the weekly chart, we can see that these orange levels are highly reactive whenever the price comes near them.

Zoomed in, it's clear that once we've broken past all three of them, we came back, retested the lowest one a bunch of times, broke through, retested the middle one just once before getting rejected back to below the lowest one again. (Notice how it kept consolidating around it lowest one, it shows and indecisiveness in the market)

So now we've fallen below the lowest level again and are currently getting rejected for the third time.

It's important to say that usually when a level keeps getting retested it gets broken and switches sides ( pivot ). In this case, whoever, since the other x/JPY pairs are seeing some weakness as well, it might be better to anticipate shorts. What we need to see is a breakdown on a lower time frame and a proper retrace in order to find a setup.

That green block is a daily bearish order block which is also acting as resistance currently.

In short: we're currently waiting for the breakdown, and a possible setup on retrace on a lower time frame. If GBPJPY -0.91% decides to go up anyway, we'd be looking for a break of that green order block and a possible long on a retrace.



Original idea by Svarog https://www.tradingview.com/chart/GBPJPY/VZ9krRbT-GBPJPY-Weekly-levels-analysis/