Bearish Scenario Setup for GBPJPY

The first month of the year consolidated, moving sideways while building an equal distribution of orders. I remained patient during this phase and simply observed.

In the first week of the second month, price initially accumulated toward the bullish side, creating the appearance of a potential upward expansion. However, toward the end of the week, price reversed sharply and moved downward, completing the overall sideways consolidation that began in the first month.

Entering the second week of the same month, price moved quickly and aggressively to the downside, revealing bearish intent. During this move, a Daily Gap was left in the market, which I remain cautious of, as such inefficiencies often attract price.

Now, in the current week, I anticipate that we are in a retracement phase before a possible continuation downward. Price opened the week by breaking market structure to the downside, then began moving upward, suggesting a corrective retracement.

On the 3-hour and 1-hour timeframes, we observe a break of previous lows, indicating a potential Break in Market Structure (BMS). From here, price may either continue downward immediately or retrace further upward to form a Lower High before continuing bearish expansion.

At this stage, patience is required. I am waiting for clear confirmation