👑GBPJPY KEY🗝️LEVELS TO WATCH👀AND WHY🤔

Hello, Traders, and Welcome!

I hope you all had a fantastic weekend. As we gear up for the trading week ahead, let's kick it off with a fresh analysis.
As we position ourselves in the current market, let's revisit a few of the previous patterns we have in place. The Diamond pattern plays a crucial role in this setup. Posted back in March, the chart illustrates a continuing Diamond pattern, with the price positioned above the 38% level at 181.042, which is considered a resistance level. While the 62% level at 186.658 has been hit, our main profit target remains above the 100% level at 195.794.


Now, let's take a look at another idea posted back in May, the Cup and Handle pattern.


The GBP/JPY chart above illustrates a Cup and Handle pattern with similarities to the Diamond continuation pattern. The price has found support at the 38% level of 178.540. Like with any price action pattern, we can use symmetry from the pattern's heights to project targets, finding the 100% level at 188.919, the same distance from the low Cup at 155.356 to the breakout at 172.136.

Since we have identified a possible support level around 178, let's analyze further in the hourly chart, where we can identify a price action reversal pattern, the Inverse Head and Shoulders.

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On the hourly chart, GBP/JPY has formed an Inverse Head and Shoulders pattern. The critical level to watch is the NECK LINE BREAKOUT at 183.008, and currently, the price is trading below it.

Here's the strategy idea: We will patiently await a long entry opportunity above the NECK LINE BREAKOUT at 183.008. To confirm this potential bullish scenario, we'll be looking for a surge in volume, indicating active market participation.

After executing the trade, our protective stop will be positioned at the midpoint of the right shoulder, with a stop level set at 182.017.

Our targets will be placed at two key Fibonacci levels:
- 62% Fibonacci level: 186.095
- 79% Fibonacci level: 186.913

We may consider partial profit-taking within this zone. If the trend remains strong with no signs of reversal, we can aim for even higher targets at 127% and 162%.

Wishing you a successful trading week ahead!

TCPLTP