Looking at the GBP/JPY 1-hour chart, I see price currently hovering around 190.164, showing mild bullish momentum but still respecting key resistance levels. Here’s my breakdown:
Market Structure & Key Zones:
Price has been bouncing between 190.00 and 190.40, suggesting a short-term consolidation phase.
190.30-190.40 is acting as a liquidity zone—if buyers can push through this level, we could see upside toward 190.60-190.75.
On the flip side, 190.00 remains a psychological support level, and a break below it could lead to a sweep toward 189.70-189.50, where previous demand has existed.
Momentum Indicators:
RSI (1-hour): 45.09 → Momentum is neutral, meaning price isn’t aggressively overbought or oversold.
CCI (1-hour): 81.05 → Mild bullish strength, but nothing parabolic yet.
Stochastic RSI (1-hour): 100.0 → This is overbought, which signals a possible pullback before further upside.
Directional Strength:
ADX (1-hour): 13.28 → Weak trend strength, confirming the possibility of range-bound movement.
DX (1-hour): 3.67 → Not an explosive directional move yet, meaning a breakout needs confirmation.
Scalping Plan:
Bullish Play: If price breaks 190.40, my next upside targets are 190.60-190.75.
Bearish Play: A rejection from 190.30-190.40 could drive price back toward 190.00 or lower.
Liquidity Grab Scenario: If price sweeps below 190.00, institutional absorption might trigger a strong reversal, making 189.70-189.50 a potential buying zone.
At this point, I’m watching price action closely—especially around 190.30—for signs of buyer exhaustion or a sudden momentum shift. Would I enter a trade right now? Not just yet. I’d want further confirmation, possibly volume profile analysis, to see if institutions are positioned for continuation or a reversal.