GBPJPY: Month-Long Bearish Outlook Revealed!Greetings Traders!
Brief Description🖊️:
The market's movements are governed by smart money, which controls the majority of liquidity. It is not governed by retail traders. They dictate market terms, while we trade patterns they generate. Smart money has two primary objectives: order pairing (entering the market against liquidity) and order booking (scaling out their positions). Due to their substantial liquidity, smart money enters the market against large amounts of liquidity, typically found on higher timeframes. This movement is necessary for them to enter and exit the market, driving market dynamics.
Market Analysis📉:
Currently, on GBPJPY, buy stop liquidity has been taken, indicating that smart money has entered their positions in a premium. The expectation is a draw towards the downside, targeting significant liquidity areas such as relatively equal lows and trendline liquidity. The daily bearish order block is expected to resist price, initiating bearish institutional order flow.
Things We Have Seen👀:
Relatively Equal Lows: These areas possess substantial liquidity, making them attractive targets for smart money.
Sell-Side Liquidity: A significant amount of investments exist at these lows.
Engineered Trendline Liquidity: More investments exist at these lows, increasing the plausibility of the market drawing towards this level to absorb the existing liquidity.
What's Important Now❗:
Stay observant of how the market reacts at these critical levels. Understanding the objectives of smart money can provide valuable insights into potential price movements.
Best Regards,
The_Architect
