GBP/JPY Bearish Rejection from Channel Resistance – Short Setup

Technical analysis of GBP/JPY on the 2-hour timeframe. Here's the idea breakdown:


---

📉 GBP/JPY Bearish Reversal Setup

Chart Context:

Price is trading inside an ascending channel, but currently reacting from the upper resistance boundary.

Several rejections (red arrows) at the resistance trendline signal selling pressure.

A clear resistance zone around 198.00 has held.



---

🔍 Technical Indicators:

200 EMA (blue) and 50 EMA (red) show an overall bullish trend, but price is now showing a pullback pattern.

RSI (~69.46) is near the overbought level, indicating a potential reversal or correction.



---

🎯 Trade Idea:

Short Entry Zone: Near 198.00 (channel resistance).

Target: 194.68 (marked as the target point and lower channel support).

Risk/Reward Potential: Approx. -349.8 pips (-1.76%) downside.



---

⚠️ Confirmation Needed:

Watch for bearish candle patterns or breakdowns below 196.88 (50 EMA) for stronger confirmation.

RSI dropping below 57 could further support bearish momentum.



---

📝 Summary:

This setup favors a short-term bearish correction within a broader uptrend. The strategy targets a move back to the lower boundary of the channel unless a breakout above 198.00 occurs.




Feedback My idea like and comment's 🙏