1. Entry Point – Bearish Confirmation
🔹 Break of the Uptrend:
The price was following a well-defined ascending trendline until it broke below it.
A bearish candle closed below the trendline, confirming a structure shift.
🔹 Retest and Rejection:
Price retested the broken trendline and previous support zone, but failed to break back above.
The dark gray box highlights the supply zone, where sellers stepped in aggressively.
Strong bearish rejection candles confirmed that buyers were weak.
🔹 Entry Trigger:
The entry likely happened after the retest rejection, possibly on a bearish engulfing candle or strong wick rejection.
This ensured that sellers were in control.
2. Stop-Loss Placement
🔺 Above the Retest High (~193.5-194.0):
The SL is safely placed above the rejection zone, avoiding minor pullbacks.
This allows the trade to breathe while keeping risk manageable.
3. Take-Profit Targets
🎯 First Target: 190.5 (Key Support)
🎯 Final Target: 189.0 (Major Demand Zone)
The blue box highlights the potential reward zone, with a Risk-Reward Ratio of approximately 1:3+, which is excellent.
If price hits 190.5, moving SL to break-even is a smart move to secure profits.
4. Trade Management & Expectations
✅ Bearish Confirmation Factors:
Lower High Formation
Break & Retest of Structure
Strong Rejection at Supply Zone
⚠ Possible Market Reaction:
If price stalls at 190.5, expect a small pullback before continuation.
A break below 190.5 should send price straight to 189.0, where buyers might step in.
Final Thoughts: High-Probability Setup
This GBP/JPY short position aligns perfectly with:
✔ Trendline Break & Retest ✅
✔ Supply Zone Rejection ✅
✔ Strong Risk-to-Reward Ratio ✅
🔹 Break of the Uptrend:
The price was following a well-defined ascending trendline until it broke below it.
A bearish candle closed below the trendline, confirming a structure shift.
🔹 Retest and Rejection:
Price retested the broken trendline and previous support zone, but failed to break back above.
The dark gray box highlights the supply zone, where sellers stepped in aggressively.
Strong bearish rejection candles confirmed that buyers were weak.
🔹 Entry Trigger:
The entry likely happened after the retest rejection, possibly on a bearish engulfing candle or strong wick rejection.
This ensured that sellers were in control.
2. Stop-Loss Placement
🔺 Above the Retest High (~193.5-194.0):
The SL is safely placed above the rejection zone, avoiding minor pullbacks.
This allows the trade to breathe while keeping risk manageable.
3. Take-Profit Targets
🎯 First Target: 190.5 (Key Support)
🎯 Final Target: 189.0 (Major Demand Zone)
The blue box highlights the potential reward zone, with a Risk-Reward Ratio of approximately 1:3+, which is excellent.
If price hits 190.5, moving SL to break-even is a smart move to secure profits.
4. Trade Management & Expectations
✅ Bearish Confirmation Factors:
Lower High Formation
Break & Retest of Structure
Strong Rejection at Supply Zone
⚠ Possible Market Reaction:
If price stalls at 190.5, expect a small pullback before continuation.
A break below 190.5 should send price straight to 189.0, where buyers might step in.
Final Thoughts: High-Probability Setup
This GBP/JPY short position aligns perfectly with:
✔ Trendline Break & Retest ✅
✔ Supply Zone Rejection ✅
✔ Strong Risk-to-Reward Ratio ✅
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.