GBPJPY LONG

GBPJPY Approaches Key Daily Order Block with Confluence at Larger Market Structure Trendline

GBPJPY has reached a significant Daily order block, which aligns with the larger market structure trendline, presenting a high-confluence area for potential market reactions.

Market Structure Analysis
• Daily Timeframe: The pair is currently in an intermediate bullish structure, indicating upward momentum remains intact on the higher timeframe.
• Lower Timeframes:
• On the 4H timeframe, the structure is bearish, with the current down move finding support around the 100% Fibonacci extension—a common target for downward moves in corrective phases.
• On the 2H timeframe, we are closely monitoring for a change in structure, specifically a break of a recent high. This would confirm a potential bullish shift, creating an opportunity to align with the larger trend.

Trade Plan
• Trigger for Entry: Await a clear change of structure on the 2H timeframe, signified by a new high. Once confirmed, look for a higher low (HL) to establish a precise entry point, riding the anticipated move upwards.
• Target: If bullish momentum resumes, the next major level is the 198 region, which aligns with key resistance and may determine whether the market consolidates further on the Weekly timeframe or initiates a new trend.

Key Considerations
• Patience and Reactivity: There is a possibility that the lower timeframe structure does not shift to bullish, in which case we remain out of the market. It’s crucial to remain reactive to price action and avoid predictive biases, ensuring setups meet predefined criteria.
• Risk Management: As always, prioritize disciplined risk management and let the market dictate the setup.

This approach allows for a structured and disciplined response, increasing the probability of capitalizing on the next significant move in GBPJPY.

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