GBPJPY H4 TF Forecast ✍️📈👀
Introduction
The GBP/JPY pair is undergoing a significant corrective move after a strong bearish impulse. Key zones such as the Fair Value Gap (FVG), Breaker Block (BRB), and Order Blocks (+OB) are mapped out, providing clues for potential reversals or continuation moves. The chart also identifies liquidity levels (“$$$”) and market structure shifts (MSS), which are crucial for anticipating price action.
Key observations:
- FVG & OB Levels: These zones represent areas where institutional orders might reside, attracting price action.
- Liquidity Grab: Price appears to have swept liquidity at previous lows, targeting the green OB zone for a potential bullish reaction.
- Market Structure Shift (MSS): The break in structure indicates a possible reversal zone aligning with institutional interest.
Trade Setup Idea
- Bullish Reversal Setup:
- Entry: Look for a long entry around the 191.000-192.000 green OB zone.
- Confirmation: Wait for bullish candlestick patterns or lower timeframe structure shifts within the OB to confirm the setup.
- Stop Loss: Place a stop-loss just below the OB zone at 190.000 to manage risk.
- Take Profit:
- First target at 194.000, aligned with recent resistance.
- Extend to 197.000, near the red FVG zone, for a swing trade.
- Bearish Continuation Setup (if invalidation occurs):
- If price breaks below the OB and fails to hold support, wait for a retracement back into the OB zone to consider shorts targeting 190.000 and below.
Additional Notes
- Risk Management: Use a 1:3 or better risk-reward ratio to ensure favorable trade dynamics.
- News Events: Keep an eye on economic data releases, as GBP/JPY is sensitive to both GBP and JPY fundamentals.
- Patience: Allow the price to reach key zones for the highest probability setups.
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