In the H4 timeframe, GBP/JPY broke below the support level at 135.38 followed by a pullback unfolding at the moment. The commitment to the downside is only 1 bar and this could present a false breakout trading opportunity when there is confirmation. Watch the video below (timestamp starts 3:28) to find out how you can profit from the trapped traders with the false breakout setup and pay attention to the details I walk through to filter out the bad trades and increase your winning rate:
Below are the key parameters for GBP/JPY potential long setup for trading session on 29 Oct 2020. Pay attention to the logic behind the false breakout and why it is easier to profit from different groups of the trapped traders.
Entry: short limit order at 136.20.
Stop loss: 135.17.
Take profit: 137.39.