As we head into the new trading week, I’ve made a strategic decision to simplify my analysis and focus strictly on the 4-hour timeframe for identifying buy and sell zones.
The 1-hour chart is still available for refining entries, but the foundation of all analysis will now come from the 4-hour structure. This allows for clearer decision-making, less noise, and stronger alignment with higher timeframe direction.
Let’s get into GBPJPY.
Current Market Structure (4H)
GBPJPY has shown strong bullish momentum pushing into the upper range of price. We’ve seen a clean, aggressive move upward with very little pullback, which tells us one thing:
This is not the place to be chasing buys.
Price is now trading in a high premium area, which is where we begin shifting our mindset from buying to preparing for potential selling opportunities.
When price is extended like this, patience becomes the strategy.
Premium Zone = Sell Mindset
At this level, we are no longer interested in breakout buys. Instead, we are watching for exhaustion, rejection, and structure shifts that could give us a high-probability entry.
This is where the BRACE method comes into play:
- Break
- Retest
- And Confirm Entry
Right now, we do NOT have confirmation yet. And this is where most traders go wrong—they try to predict instead of waiting.
We don’t guess at the top.
We wait for the market to show its hand.
What I’m Watching For This Week
Going into the new week, I am specifically watching for:
1. Break of Structure
I want to see price break below a recent 4H support level. That tells me buyers are starting to lose control.
2. Retest into the Zone
After the break, I want price to come back into the 4H sell zone. This is where weak buyers often get trapped.
3. Bearish Confirmation
This is the trigger. A strong bearish candle closing from that zone gives me the confirmation I need.
That’s the BRACE entry.
No confirmation = No trade.
What If Price Keeps Pushing Higher?
Simple.
We adjust the zone.
If price continues to make higher highs, I will move my 4H sell zone up accordingly and continue waiting. There is no reason to fight momentum prematurely.
Let the market exhaust itself first.
Entry Refinement (Optional)
Once the 4H setup is confirmed, traders can drop down to the 1-hour timeframe for tighter entries if they choose.
But the key point is this:
The decision is made on the 4H.
The 1H is just for precision.
Final Thoughts
GBPJPY is currently in a high premium environment, and that automatically shifts my bias toward looking for sells—not immediately, but strategically.
This week is about patience and discipline.
We are not chasing price.
We are waiting for structure.
If the BRACE setup forms, this could present a high-probability opportunity. If not, we simply move on to the next pair.
That’s how professionals trade.
