📉 GBP/JPY 4H Analysis – Liquidity Grab + Demand Zone Anticipation
Price action on GBP/JPY is currently in a corrective phase after a strong bullish move, and this pullback presents an interesting setup based on institutional footprints.
1. Structure Break (BOS) & Shift in Momentum
* A Break of Structure (BOS) occurred after price broke above the previous swing high, confirming a bullish trend direction.
* Following the BOS, price retraced into an imbalance (Fair Value Gap - FVG), and responded with aggressive bullish momentum — a classic SMC footprint suggesting institutional buy orders being filled.
2. Current Price Action – Short-Term Bearish Retracement
* Price is currently rejecting the 197.894 resistance zone, and showing signs of weakness with bearish candles.
* This correction is likely targeting liquidity beneath recent lows and a return into the demand zone for potential long opportunities.
3. Demand Zone & Buy Setup
* A well-defined **Demand Zone** sits between **194.000 – 194.600**, which aligns with the previous consolidation and origin of the last major push up.
* This area is also aligned with the unmitigated FVG area — making it a confluence zone where institutional orders are likely to rest.
đź“Ť Trade Plan
Short-Term Bias: Bearish into Demand
Long-Term Bias: Bullish continuation
* Entry: 197.894 (already tapped)
* Stop Loss: 199.123 (above recent highs/supply)
* Take Profit: 194.618 (just above the demand zone to secure profits early)
* Risk-to-Reward: Approximately 1:3
If price enters the demand zone and forms bullish price action (engulfing, internal BOS, or FVG), I will be looking to **flip long** with a target back toward **197.800 – 198.900**.
âś… Conclusion
The current move looks like a healthy retracement to fill imbalances and grab liquidity before the next impulsive leg. This setup provides a high-probability trade opportunity using clean smart money principles.
Price action on GBP/JPY is currently in a corrective phase after a strong bullish move, and this pullback presents an interesting setup based on institutional footprints.
1. Structure Break (BOS) & Shift in Momentum
* A Break of Structure (BOS) occurred after price broke above the previous swing high, confirming a bullish trend direction.
* Following the BOS, price retraced into an imbalance (Fair Value Gap - FVG), and responded with aggressive bullish momentum — a classic SMC footprint suggesting institutional buy orders being filled.
2. Current Price Action – Short-Term Bearish Retracement
* Price is currently rejecting the 197.894 resistance zone, and showing signs of weakness with bearish candles.
* This correction is likely targeting liquidity beneath recent lows and a return into the demand zone for potential long opportunities.
3. Demand Zone & Buy Setup
* A well-defined **Demand Zone** sits between **194.000 – 194.600**, which aligns with the previous consolidation and origin of the last major push up.
* This area is also aligned with the unmitigated FVG area — making it a confluence zone where institutional orders are likely to rest.
đź“Ť Trade Plan
Short-Term Bias: Bearish into Demand
Long-Term Bias: Bullish continuation
* Entry: 197.894 (already tapped)
* Stop Loss: 199.123 (above recent highs/supply)
* Take Profit: 194.618 (just above the demand zone to secure profits early)
* Risk-to-Reward: Approximately 1:3
If price enters the demand zone and forms bullish price action (engulfing, internal BOS, or FVG), I will be looking to **flip long** with a target back toward **197.800 – 198.900**.
âś… Conclusion
The current move looks like a healthy retracement to fill imbalances and grab liquidity before the next impulsive leg. This setup provides a high-probability trade opportunity using clean smart money principles.
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.