The GBP/JPY pair on the M30 timeframe displays a potential selling opportunity due to the presence of a well-defined bearish channel pattern. This pattern suggests ongoing selling pressure and a higher likelihood of further declines in the coming minutes or hours.
Key Points:
Sell Entry: Consider entering a short position around the current price of 188.60. This places your entry near the current price action and potentially close to a retest of the channel resistance.
Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones: 187.62: This represents a significant support level within the channel. 187.10: This is a further extension of the downside target, based on the height of the channel.
Stop-Loss: To manage risk, place a stop-loss order above the broken resistance line of the channel, ideally around 189.15. This helps limit potential losses if the price unexpectedly breaks above the channel and invalidates the downtrend.