Short Answer 
The answer explains that a fair value gap represents the difference between an asset’s fair value and market price, highlighting the importance of identifying bullish gaps for potential buying opportunities. It outlines a three-step process for analyzing bullish fair value gaps in the GBPJPY currency pair using 1-hour intervals by gathering historical data, identifying gaps, and counting them, although exact counts require suitable trading tools or software.
Step 1: Understand Fair Value Gaps
A fair value gap is the disparity between an asset’s perceived fair value and its current market price. Recognizing bullish gaps is crucial as they suggest the potential for upward price movements. Traders utilize these gaps to scout for promising buying opportunities within the market.
Step 2: Define the Time Frame and Currency Pair
In this analysis, the GBPJPY is the currency pair comprising the British Pound (GBP) against the Japanese Yen (JPY). The 1-hour time frame is essential, as it focuses on price changes observed through hourly intervals. This specific time frame allows traders to track short-term movements effectively.
Step 3: Conduct Analysis for Bullish Gaps
To assess the number of bullish fair value gaps on December 19, 2024, follow these steps:
- Gather Historical Data: Collect the 1-hour price data for GBPJPY around the specified date.
- Identify Gaps: Search for instances where the closing price of one candle is significantly lower than the opening price of the next candle, indicating buying pressure.
- Count the Bullish Gaps: Tally the number of distinct bullish fair value gaps you find during this analysis.
Without access to real-time or future data, exact counts can’t be provided without using relevant trading tools or software for tracking market movements.