GBP/JPY (1H) Chart Analysis:
1. Trend Overview:
The chart shows a downtrend after multiple rejections at resistance levels (marked with orange circles).
Recent price action indicates range-bound movement, consolidating between support and resistance.
2. Key Levels:
Resistance Zone: Around 189.948 (Green Area) – Price has struggled to break above.
Support Zone: Around 187.698 (Red Dashed Line) – A potential downside target.
3. Trade Setup:
Bearish Setup: The trader expects a rejection from the resistance zone (~189.5) and anticipates a downward move toward 187.7.
Entry: Below resistance (~189.3-189.5).
Stop Loss: Above resistance (~189.9).
Take Profit (TP): Around 188.0 and 187.7 (marked by the red support lines).
Risk-to-Reward Ratio: Favorable short setup with a downward move expectation.
4. Market Sentiment & Price Action:
If price fails to break resistance, it will likely drop to support.
A break above 189.9 would invalidate this short setup.
The price is currently at a decision point – either confirming the bearish move or attempting a breakout.
Conclusion:
📉 Bearish bias unless price breaks above 189.9. ✅ Ideal entry for shorts: Rejection at resistance. 🚨 Stop-loss required in case of breakout.