GBPJPY 4H BUY — Sellside Liquidity Sweep into 4H Demand OBBritish Pound/Japanese YenFX:GBPJPYthefxmbrandGBPJPY has been in a clear bullish structure on the 4H timeframe — printing a BOS after accumulation in the 207–210 range and displacing aggressively into the 216.00+ supply zone. The current bearish move is not a trend reversal; it is a deliberate institutional retracement engineered to accomplish two things: sweep the resting sellside liquidity at the $$$$$ level (209.16–208.86) and reprice into the unmitigated 4H demand OB below. The $$$$$ LIQUIDITY pool visible on your chart represents equal lows — clusters of retail stop-loss orders sitting just below that level. Smart money algorithms drive price into these pools to fill buy orders at discounted prices before sending price higher. The 4H OB zone (207.09–208.86) is the institutional origin block of the prior BOS leg — it has not been revisited since price broke away, making it unmitigated and high-probability for a reaction. The ascending trendline converging with the OB zone around 207–208 adds a third layer of confluence. Three-point confluence setups — liquidity pool + demand OB + trendline — are among the highest probability SMC entries available on the 4H timeframe. The wide pip risk (~206 pips) is the trade-off for this being GBPJPY, which is a volatile cross pair with larger average candle ranges. Once price sweeps the $$$$$ level and a bullish CHoCH is confirmed on the 1H timeframe, the entry is triggered. Targets are the internal range equal highs at 212.76–213.01 (TP1), the prior BOS area at 214.08 (TP2), and the full return to the strong high at 216.00+ (TP3). Macro tailwinds support this — GBP has been broadly strong in 2026 while JPY weakness persists under the wide rate differential. Full trade levels Entry zone ($$$$$ liq + OB top) 208.86 – 209.16 Ideal entry (mid-OB after sweep) 208.86 — limit order Stop loss (below OB + trendline) 206.80 Take profit 1 (internal range / EQL) 212.76 – 213.01 Take profit 2 (prior CHoCH / BOS area) 214.08 Take profit 3 (strong high / ERL) 216.00+ Move SL to break-even after TP1 hit (212.76) Key things to understand about this specific setup: The three-point confluence is what makes this high probability. The $$$$$ liquidity pool, the 4H demand OB, and the ascending trendline all converge in the same 208.50–209.16 zone. That's rare and clean — it's exactly the kind of area institutions defend aggressively. The biggest mistake traders make on GBPJPY — entering too early. You're currently at 211.94 and the entry is ~280 pips away. Do not chase. GBPJPY can absolutely keep dropping another 300 pips without warning — it's one of the most volatile pairs in forex. Set your limit order, set an alert, and walk away. The wide stop (206.80) is not optional. GBPJPY regularly wicks 100–150 pips in a single 4H candle. A tight 50-pip stop will get hunted before price ever moves in your direction. The R:R still works at 1:4.4 on TP3 even with the wide stop — just size down accordingly so the 206 pip SL only risks 1–2% of your account. Macro alignment is ideal here — GBP strength + JPY weakness is the dominant 2026 theme, so the fundamental current is behind this trade.