FX.co ★ t11.taractn | GBP/JPY

My Technical Analysis: GBP/JPY 1-Hour Chart Looking at this 1-hour chart, I see GBP/JPY in a violent downtrend that has shown no mercy. Price has collapsed from the 212.500 region, crashing through multiple support levels, and is now trading near 208.461. The sell-off has been relentless, with virtually no meaningful counter-trend bounces. My analysis using FVGs, Order Blocks, and S/R focuses on identifying where the next potential support might emerge and whether were approaching exhaustion levels. My Read on the Market Structure & Key Levels How I View the Current Context: The structure is aggressively bearish with a clear sequence of lower highs and lower lows. The most recent leg shows a breakdown below the 209.500 support level, accelerating the move lower. Momentum remains strongly with the sellers, and there are no signs of reversal patterns yet. Each attempt at a bounce has been shallow and quickly sold into. The Critical Zones Im Watching: Current Support (Testing): The 208.400 - 208.500 zone is the current level being tested. Price is hovering near the recent low of 208.461. Next Psychological Support: Below current levels, the 208.000 round number is the next obvious target, followed by 207.500 and the critical 207.000 level. Immediate Resistance (First Hurdle): The 209.000 - 209.500 zone is the first key resistance, representing the broken support level that should now act as resistance. Primary Resistance (Trend Reversal Level): The 210.000 - 210.500 area is the significant resistance that would need to be reclaimed for any hope of trend reversal. This was a previous consolidation zone. Where I Identify the Fair Value Gap (FVG): The sharp sell-off from 210.500 created multiple bearish FVGs. The most significant imbalance zone I see is between approximately 209.000 and 210.000. This gap now acts as a magnetic resistance zone. Any bounce into this FVG would be a textbook opportunity for sellers to re-enter, filling the imbalance before potentially continuing lower. My Order Block Analysis: Bearish Order Blocks (Supply Zones): Primary: 210.000 - 210.500 – The breakdown candle cluster that initiated the most aggressive leg down. Secondary: 209.000 - 209.500 – The rejection area where selling pressure emerged during the consolidation before the breakdown. Bullish Order Blocks (Demand Zones): I dont see any significant bullish blocks forming yet. The 208.000 zone might attract buyers due to psychology, but no structural demand has been established. My Trading Plan & Bearish Bias My bias is bearish, and Im looking to sell rallies rather than buy dips. My ideal scenario is a bounce that climbs into the FVG and bearish order block confluence zone between 209.000 and 209.500. Ill wait for a clear rejection pattern there to consider a short entry, targeting a break below 208.400 toward 208.000 and potentially 207.500. If price continues to grind lower without a meaningful bounce, I might consider a breakout short below 208.400, but I prefer the better risk/reward of a pullback entry. The only thing that would make me reconsider the bearish view is if price powers back above 210.500 and holds—that would invalidate the breakdown structure. Until then, Im treating any strength as a selling opportunity in this persistent downtrend. Risk Warning: The sell-off has been aggressive, and were approaching the 208.000 psychological level, which could attract buyers. A short squeeze could occur at any time. Ill keep position sizes smaller and stops tighter, waiting for confirmation rather than chasing the move. The next few candles will be crucial in determining whether we get a relief bounce or continue lower.