Forex Technical Analysis GBPJPY | Our expectations:
Beginning of a short-term downtrend, a breakout below the main diagonal of the medium-term upward trend and activated H & S formation makes it appropriate to position with sell orders close to the test of the neckline around 147.04 with stop 147.90.
Multiple diagonal and horizontal resistances create negative expectations. Crossing the SMA50 under SMA200 (deadly crossing) increases the likelihood of a new downward movement.
Fibonacci 61.8 on the last wave and 38.2 on the downward trend are also negative for the pair.
DeM (14) remains below 0.3 after unsuccessful rotation, suggesting a likely negative flag formation at H4 - sell signal.
Alternative Scenario: Returning the price above the main diagonal of the uptrend will cancel the negative scenario.
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