GBPJPY H4 Markup

GBPJPY H4 Analysis & Trade Setup – 30th Jan 2025

Introduction

The GBPJPY pair is currently in a bullish market structure after breaking a key resistance zone. The H4 chart shows a potential retracement into a demand zone before a continuation to the upside. The price is approaching a previously respected order block (OB) zone, which may act as a strong support area for a potential bullish move.

Trade Setup & Key Levels

📌 Key Observations:

• Break of Market Structure (BMS): The price has shifted bullish after multiple BMS confirmations.
• Mitigation of Order Block (OB): A previously established OB zone around 190.800 – 191.200 is expected to act as support.
• Liquidity Grab & Retest: The price might sweep liquidity before pushing higher.
• FVG (Fair Value Gap) Fill: The market could fill the imbalance before continuing upwards.

📉 Scenario 1 (Bullish Confirmation – Ideal Setup)
✅ Wait for bullish rejection (wick rejections, engulfing, or confirmation candles) from the 191.000 – 191.200 OB zone.
✅ Look for higher low formation and bullish structure shift.
✅ Enter a long position around 191.100 with:

• 🎯 Target 1: 193.000 (Short-term resistance)
• 🎯 Target 2: 196.000+ (Major liquidity zone)
• 🛑 Stop Loss: Below 190.800

📉 Scenario 2 (Deeper Retracement – Secondary Setup)
⚠ If the price breaks below the OB, wait for a reaction from 190.000 – 190.500 before considering re-entry.

Final Thoughts

Patience is key—waiting for confirmations such as bullish candlestick patterns or a strong impulse move will increase probability. A proper risk-to-reward (RR) ratio ensures optimal trade execution.

Keep an eye on the lower timeframes (M15-M30) for better entry timing. 🎯🔥