GBP/JPY Daily Timeframe Analysis – Bearish Setup
Hey Traders!
Let's analyze GBP/JPY on the D1 (Daily) timeframe to identify potential trade opportunities.
Key Observations on GBP/JPY (D1 Chart)
✅ Strong Selling Momentum: The market initially showed strong bearish pressure, followed by a slow recovery, forming a structured uptrend.
✅ Rising Wedge Formation: A rising wedge pattern developed, indicating potential weakness in the uptrend.
✅ Breakout Confirmation: The market has broken below the wedge, signaling a possible trend reversal.
✅ Resistance Rejection: If the market rejects the resistance level again, it will provide a strong confirmation for a sell trade.
✅ Minor Support as Key Trigger: We will only confirm a sell once the last minor support is broken.
Trading Strategy – Bearish Setup
📉 Sell Confirmation
Wait for a second rejection from the resistance level on the daily timeframe for stronger confirmation.
A break below the last minor support will confirm the sell setup.
Look for bearish price action signals like a bearish engulfing or pin bar rejection before entering a trade.
Potential downside targets: 187.00, 185.50, and 184.00.
📈 Invalidation of Bearish Setup
If the price fails to break minor support and starts forming higher highs, the bearish outlook will be invalid.
Conclusion
📌 GBP/JPY has formed a rising wedge and broken it, signaling a potential bearish move.
📌 Traders should wait for a second rejection at resistance or a break of minor support before entering a sell trade.
📌 Key support levels to watch: 187.00, 185.50, and 184.00.
🚀 Stay patient, wait for confirmations, and trade smart! Let me know if you need further updates.
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