A very interesting formation has formed on the GBPJPY pair on the daily chart. Tuesday’s larger and Wednesday’s smaller daily candle formed the Inside Bar pattern. In addition, today’s daily candle has completely covered its Wednesday range, creating another formation the so-called Outside Bar.
The closing of today’s (Thursday’s) candle is accompanied by a change of sentiment on MACD, a minimum has been created and the indicator starts to grow.
The conditions of the PA+MACD strategy are met, i.e. the candle creating the bullish Outside Bar is supported by the change of direction to upward on MACD.
Assuming that the top of the above mentioned patterns is more likely to be broken, you can consider opening a Buy Order after a confirmed breakout, because there is a high probability that the price will continue to move in the breakout direction.
You can also think about taking a position earlier and analysis of chart H4 shows that the most suitable place may be the appearance of a pinbar rejecting local trend line (blue dashed) or an S/R zone (green).
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