GBPJPY 1H Finally Going to Jump?
- Strategy Explanation
GBPJPY has been consolidating for almost 2 weeks on 1H chart, plenty of traps have been set within this range, thus a lot of liquidity has been generated presumably. The question is: In the coming week, will GBPJPY finally break out the resistance level and activate all potential BUY limit orders to push the price up towards target zones further above (seen on the chart)?
I think it is very likely that the current 1H purple demand zone is where the market will jump from, so a pretty simple BUY limit order can be set up around this zone(see the LONG Position widget):
Entry: 191.638
Stop Loss: 191.030
Take Profit: 194.703 (potential 4H Supply Zone from 194.703 to 197.578)
Risk Reward Ratio: 5.0 - Cautions
If the red "Caution level" at 190.900 is reached first, then the consolidation period of GBPJPY probably will be continuing and new market analysis will be made.
I don't recommend risk too much on this trade since no upward confirmation signals has formed yet, but it is still a trade worth taking concerning the RRR is around 5. Higher quality BUY opportunities can be found after the 1H resistance level has been truly broken, if you don't feel safe on the current one. Remember: Trading is a game of probability and Risk Management is the key.
Note
Hi Guys, I think GJ now has even higher probability to reach our TP, since it gave us an upward Break of Structure(BOS) confirmation signal in prior to pullback into the 1H entry Demand Zone. Good luck everyone :)
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