GBP/JPY: Identifying a Reversal Following a Strong Absorption

Following the successful closure of our previous position in this currency pair, which yielded a profit, we are now closely monitoring the market for signs of a potential reversal. This observation is based on the appearance of a strong absorption candle around the 200.55 area, which initiated a price retracement. The price has since retraced and returned to approximately the 80% value area. At this juncture, we are detecting indications of a possible new reversal towards the imbalanced areas.

This setup suggests that the market might be poised for another significant move. By analyzing the price action and the behavior of the absorption candle, we aim to capitalize on this potential reversal. It is crucial to keep an eye on the imbalanced zones as these areas may provide opportunities for profitable trades. Our strategy will involve carefully monitoring these levels and adjusting our positions accordingly to maximize our returns.