HOW MANY LINES DO YOU DRAW ON YOUR CHART TO UNDERSTAND WHERE THE MARKET IS GOING NEXT?
I am not a big fan of messy charts, full of lines, channels, Fibonacci, blablabla... The list can be really extensive.
For GBPJPY pair, it has been rising for the last 4 months, non-stop. We can see RSI indicating it is overbought and OBV showing divergencies vs price movements.
It has also reached a strong resistance trend line, coming all the way from 2016. It has also touched a strong resistance level, which has put the price down on the last days of February. On top of that, it has reached the top of a rising channel. Which I expect to hold and drop the price to support levels.
My take is that price will revisit this strong resistance level and continue its way down... Nevertheless, it needs a correction from the 4-month rise. I expect next week to form a strong red candle.