Good morning traders, today we bring you our analysis in GBP/JPY as we consider that there may be a potential bearish opportunity if some events happen in the short term.
🔸First, we see a bearish bounce at the confluence zone between the Ascending Channel and the Resistance zone.
🔸From there, we saw a bearish movement of approximately 400 pips.
🔸Although we are now in a consolidation, the downside potential remains. The only thing we have to take into account and not overlook is the following Support Area in
148,500-148,600.
🔸In case we see a break in this price level, obviously we are not going to place a sell immediately, but we will wait for a correction / retest towards the zone to look for the bearish setup.
In the following chart we will detail the setup to look for:
🔸The pattern is illustrative to show the correction, but it may have variants and it will correspond that we adapt to the behavior of the market.
🔸We look for this structure to be able to have a good risk-benefit ratio, since if we place our entry below the structure, the stop loss above and the take profit on the Ascending Trendline, we will have a much greater benefit than the risk assumed.
🔸First, we see a bearish bounce at the confluence zone between the Ascending Channel and the Resistance zone.
🔸From there, we saw a bearish movement of approximately 400 pips.
🔸Although we are now in a consolidation, the downside potential remains. The only thing we have to take into account and not overlook is the following Support Area in
148,500-148,600.
🔸In case we see a break in this price level, obviously we are not going to place a sell immediately, but we will wait for a correction / retest towards the zone to look for the bearish setup.
In the following chart we will detail the setup to look for:
🔸The pattern is illustrative to show the correction, but it may have variants and it will correspond that we adapt to the behavior of the market.
🔸We look for this structure to be able to have a good risk-benefit ratio, since if we place our entry below the structure, the stop loss above and the take profit on the Ascending Trendline, we will have a much greater benefit than the risk assumed.