GBP/JPY 4H: Reversal Signals and Trading Strategies

GBP/JPY 4H: Reversal Signals and Trading Strategies
The chart shows the GBP/JPY currency pair on a 4-hour timeframe. The chart is filled with various technical indicators and annotations, including trend lines, Fibonacci retracement levels, volume profile, and momentum indicators. The price action is marked with terms like BOS (Break of Structure), ChoCH (Change of Character), and other annotations indicating significant price movements and potential reversal points. The chart also includes a Relative Strength Index (RSI) at the bottom and a volume histogram.

Analysis:
Price Action and Trend Lines:

The price has been moving within a descending channel, indicated by the blue parallel lines.

There are multiple BOS and ChoCH annotations, suggesting significant shifts in market structure.

The recent price action shows a potential reversal from the lower boundary of the descending channel.

Fibonacci Retracement:

Key Fibonacci levels are marked, with the 0.618 level at 192.753 and the 0.382 level at 191.875.

The price is currently testing the 0.618 Fibonacci retracement level, which is a critical resistance point.

Volume Profile:

The volume profile on the right side shows high trading activity around the 194.197 level, indicating strong resistance.

Lower volume nodes around 192.247 suggest potential support.

Momentum Indicators:

The RSI is currently around the 30.31 level, indicating oversold conditions and a potential for a bullish reversal.

The volume histogram shows decreasing bearish momentum, supporting the potential for a reversal.

Buy Strategy:
Entry: 192.247 (current price level)
Take Profit 1 (TP1): 194.197 (previous high and volume resistance) - approximately 195 pips
Take Profit 2 (TP2): 196.000 (next significant resistance level) - approximately 375 pips
Stop Loss (SL): 190.080 (below recent low and support level) - approximately 217 pips

Sell Strategy:
Entry: 194.197 (if price fails to break above this resistance)
Take Profit 1 (TP1): 192.247 (current support level) - approximately 195 pips
Take Profit 2 (TP2): 190.080 (next significant support level) - approximately 411 pips
Stop Loss (SL): 196.000 (above recent high and resistance level) - approximately 180 pips

Alexgoldhunter

Alex Gold Hunter

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Alexgoldhunter

Alex Gold Hunter

Free Signals & analysis
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tinyurl.com/ClassicFreeSignals

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