Welcome, traders! Today, we’re diving into GBP/JPY, where two powerful harmonic structures—the Dragon and Cypher patterns—are shaping the market structure. Let’s break it down:
🐉 Dragon Pattern - The Bullish Shift
The market recently completed a Dragon pattern, marking a potential trend reversal from the previous bearish impulse. This pattern indicated buying pressure stepping in at key support, leading to a strong upward move.
🔶 Cypher Formation - A Brief Pause Before More Upside?
Following the Dragon breakout, price action formed a Cypher pattern, with price currently hovering around its completion zone. A pullback here could act as a retracement before continuation, offering potential trade opportunities.
📈 Key Levels & Targets
✅ Cypher Target: Aligned with Fibonacci 23.6%, signaling the first area of interest.
✅ Dragon Target: The extended projection suggests an eventual move toward Fibonacci 2.618, completing a larger bullish sequence.
🎯 Trade Plan & Psychology
A minor pullback is expected before price resumes its bullish momentum toward higher targets.
Risk Management: A stop below the Cypher structure helps manage risk, ensuring protection against any unexpected reversals.
Patience is key! Let the market confirm the move before committing to a position.
🔥 If the structure holds, we could see a strong continuation to the upside. Stay disciplined and trade the plan! Let me know your thoughts in the comments.
Happy trading! 🚀📊
Trade active
✅ Support Levels:
38.2% (189.880): Price has bounced from this level, showing buying interest.
Trade closed: target reached
Note
Note
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.