GBPJPY H1 Forecast

GBPJPY H1 Forecast & Trade Setup

Introduction

This is a 1-hour (H1) chart of GBP/JPY, showing a technical setup based on market structure, liquidity, and Fibonacci levels. The chart suggests a potential bullish move after a liquidity grab and mitigation of an order block (OB) zone.

Key Observations

1. Break of Market Structure (BMS)
   • The previous downtrend broke structure, signaling a potential reversal.
   • Multiple BMS zones confirm a shift from bearish to bullish intent.
2. Mitigation of Order Block (OB) & Demand Zone
   • A bullish order block (OB) in the green zone around 191.500 has been tapped.
   • Price is reacting from this demand area, indicating potential bullish strength.
3. Liquidity Grab & Fibonacci Confluence
   • Price dipped into liquidity pools, collecting orders before a possible bullish push.
   • The 0.618 Fibonacci retracement level (192.000) aligns with liquidity and acts as a strong support zone.
4. Market Structure Shift (MSS)
   • The recent MSS confirms a shift in price behavior, reinforcing the bullish outlook.

Trade Setup Idea

Long (Buy) Setup

• Entry: Around 192.000 – 192.100 (0.618 Fibonacci level)
• Stop Loss (SL): Below 191.800 (below the liquidity grab & order block)
• Take Profit (TP):
  • TP1: 193.000 (recent high)
  • TP2: 194.500 (next liquidity pool)
  • TP3: 195.000 (psychological level)
• Risk-Reward Ratio (RRR): ~1:3 or higher

Final Thoughts

This setup aligns with smart money concepts (SMC), including liquidity grab, order block mitigation, and structure shifts. However, for confirmation, watch for bullish rejection candles, lower time frame breakouts, or volume increase before entering. Managing risk with a well-placed stop loss is crucial.