GBPJPY has been following a well-defined uptrend channel for weeks, making consistent higher highs and higher lows. Currently, price action is trapped in a clear consolidation zone near the upper channel boundary.
This consolidation indicates market indecision and potential absorption of liquidity before the next move. A confirmed breakdown below this zone would signal that buyers are exhausted and sellers are ready to push price lower.
Market structure shows that the broader channel is still valid, but momentum is slowing. Volume may begin to shift as traders position for the next breakout.
Trade Plan:
1. Wait for a clear breakdown below the consolidation zone.
2. Confirm entry only after a strong bearish candle closes beneath the range.
3. Place stop-loss above the consolidation zone for controlled risk.
4. Scale partial profits near the first target at 194.300.
5. Hold remaining positions for the second target at 190.500 along the channel support.
Key Notes:
✅ Patience is essential—avoid jumping in before confirmation.
✅ Proper risk management is critical: always define stop-loss and position size.
✅ This setup follows smart money principles of liquidity trapping before expansion.
✅ Watch for volatility on breakout—look for clear momentum candles with volume.
Like, comment, share & follow for more premium trade ideas.
This consolidation indicates market indecision and potential absorption of liquidity before the next move. A confirmed breakdown below this zone would signal that buyers are exhausted and sellers are ready to push price lower.
Market structure shows that the broader channel is still valid, but momentum is slowing. Volume may begin to shift as traders position for the next breakout.
Trade Plan:
1. Wait for a clear breakdown below the consolidation zone.
2. Confirm entry only after a strong bearish candle closes beneath the range.
3. Place stop-loss above the consolidation zone for controlled risk.
4. Scale partial profits near the first target at 194.300.
5. Hold remaining positions for the second target at 190.500 along the channel support.
Key Notes:
✅ Patience is essential—avoid jumping in before confirmation.
✅ Proper risk management is critical: always define stop-loss and position size.
✅ This setup follows smart money principles of liquidity trapping before expansion.
✅ Watch for volatility on breakout—look for clear momentum candles with volume.
Like, comment, share & follow for more premium trade ideas.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.