This pair has created an opportunity for us to take advantage of a supply zone
in a period of consolidation for GBP/JPY
. "Consolidations happen either during trending market phases or before a new trend. There are different consolidation patterns as we will see later: sideways ranges, wedges
, double/triple tops or triangle shaped consolidations, just to name a few. To shake off amateur traders, you can frequently see false breakouts and breakdowns during horizontal ranges. It is, thus, very important to wait for a confirmed breakout where the price actually closed outside of the range.", says Rolf. This trade as always will be posted when the time is right. We're counting on a good week of volatility! Rolf, Graeme, How To Trade Consolidations -, Tradeciety Online Trading. (2019).