This chart outlines a potential price reaction for GBP/JPY on the H1 timeframe based on **Order Blocks (OB)** and possible market scenarios:
### Key Zones:
1. **OB Bearish Zone (196.750 – 197.000):**
– This is a key **supply zone** where sellers may dominate. If price moves into this area, it could trigger bearish momentum, leading to a reversal.
2. **OB Bullish Zone (195.750 – 196.000):**
– This is a **demand zone** where buyers are expected to step in. Price entering this zone could initiate a bullish push back toward higher levels.
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### Possible Scenarios:
1. **Bullish Rejection from OB Bullish Zone:**
– If the price reaches the OB Bullish Zone, we expect a possible **bounce upward** toward the OB Bearish Zone.
– **Validation:** Price forms bullish rejection candles (e.g., pin bar or engulfing patterns).
– **Target:** The OB Bearish Zone around 196.750-197.000.
2. **Bearish Continuation from OB Bearish Zone:**
– If the price hits the OB Bearish Zone after a bullish retracement, we anticipate a **rejection** and downward continuation.
– **Validation:** Price forms bearish reversal patterns in the OB Bearish Zone.
– **Target:** Break below the OB Bullish Zone, extending to lower support levels.
3. **Direct Breakdown Below OB Bullish Zone:**
– If the price fails to hold in the OB Bullish Zone, it could lead to a **bearish breakout** toward deeper support levels.
– **Validation:** Price closes strongly below the OB Bullish Zone.
– **Target:** Lower levels around 194.500 or further down.
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### Notes:
– Monitor candlestick patterns and volume near the key zones to confirm entries.
– Be cautious of **false breakouts**; wait for clear confirmation before entering trades.
– Use stop-loss levels just below/above the zones to manage risk effectively.