As shown on the chart, there are 2 possible setups for GBPJPY in the coming week or two.
It is important to plot your S&R lines as well as determining the CZ (Critical Zones). On the chart, there are 3 CZs to look out for in the current price range.
Firstly, on the 4H charting, price is in a downward trend channel. A break above it and retest of the channel would be a good entry point. This first scenario setup is dictated in GREEN ARROWS.
Secondly, on the 4H charting as well, further downside is possible till the next CZ before it could break upwards as prices are retesting a longer term upward trend line.
A further downside and retest of the CZ 3 AND breakout of the downward channel could signal that a H&S pattern (DAILY CHARTING) is about to be completed. This second scenario is dictated in RED ARROWS.
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