The GBP/JPY pair has encountered substantial resistance around the 189.10 level, leading to multiple negative closures below this key barrier. This resistance has become a significant obstacle, hindering the pair’s ability to establish itself within the bullish channel. The consequence has been a decline towards 188.00, where the pair has entered into a temporary phase of sideways fluctuation.
The stochastic indicator on the chart is illustrating attempts to exit the overbought regions. This move may create an opportunity to gather the necessary negative momentum to reinitiate a bearish trajectory. Anticipated targets for this bearish movement include 187.30, followed by 186.10.
However, a successful breach of the resistance level, coupled with the ability to sustain trading above it, would invalidate the bearish outlook. Instead, this scenario could pave the way for the formation of robust bullish waves, potentially driving the pair towards 189.80 and 190.40.
The expected trading range for the day is projected to be between 188.70 and 187.30, with an overall bearish trend anticipated. Traders are advised to closely monitor price behavior around key support and resistance levels for potential trading opportunities.