GBP/JPY Bullish Setup – Dow Theory Confirmation

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According to Dow Theory, the GBP/JPY pair is currently forming a consistent series of Higher Highs (HH) and Higher Lows (HL) — a strong indication of an ongoing bullish trend.

To capitalize on this trend continuation, we are placing a Buy Stop order. If the price breaks above the previous HH, it will confirm the bullish momentum, and we’ll execute the trade based on the levels below:

📊 Trade Parameters:

Pair: GBP/JPY

Trend: Bullish

Entry Point (Buy Stop): 193.557

Stop Loss (SL): 192.276

Take Profit 1 (TP1): 194.838 ✅ (1:1 Risk-Reward)

Take Profit 2 (TP2): 196.119 ✅ (1:2 Risk-Reward)

Lot Size: 0.11

Risk: $200

Potential Reward: $300

🧠 Strategy:

We will open two trades:

First trade will target a 1:1 risk-to-reward ratio

Second trade will aim for a 1:2 risk-to-reward ratio

This approach allows early profit booking while giving space for extended gains if the bullish breakout continues.

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