In this GBP/JPY daily chart, a strong resistance is highlighted around the red-marked area, located around 197.480. Price action has shown a consolidation range, with a potential downtrend developing. The recent bearish candlestick indicates a possible rejection of the resistance, suggesting that we could see a pullback to lower levels.
There is a significant demand area near 180.711 (green area), which could attract buyers and provide support for the pair if the downtrend persists. The supply area marked in red also acts as a potential liquidation point for long positions.
The red arrow in the chart indicates the possible price action predicted by the trader. The price could move towards the Order Block (OB), which represents a Fair Value Gap, located around the red-marked zone. This level acts as a supply area, and the price could rise up to fill the gap, attracting sellers and subsequently pushing the price down.
In this context, the price is expected to rebound towards the Fair Value Gap before continuing its decline. This movement would trigger a short order, as the trader anticipates a significant pullback from this resistance to reach lower levels, like the green area that acts as a strong support around 180.711.
This type of trade requires detailed price action analysis and proper risk management to take advantage of the expected pullback from the OB.
There is a significant demand area near 180.711 (green area), which could attract buyers and provide support for the pair if the downtrend persists. The supply area marked in red also acts as a potential liquidation point for long positions.
The red arrow in the chart indicates the possible price action predicted by the trader. The price could move towards the Order Block (OB), which represents a Fair Value Gap, located around the red-marked zone. This level acts as a supply area, and the price could rise up to fill the gap, attracting sellers and subsequently pushing the price down.
In this context, the price is expected to rebound towards the Fair Value Gap before continuing its decline. This movement would trigger a short order, as the trader anticipates a significant pullback from this resistance to reach lower levels, like the green area that acts as a strong support around 180.711.
This type of trade requires detailed price action analysis and proper risk management to take advantage of the expected pullback from the OB.