2025/05/26 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/05/26 is to buy.

Looking at the market context, the weekly chart is a sell, the daily chart is a buy, the 4-hour is a sell, and the 1-hour chart (H1) leans toward a buy.
This week the question is whether price falls from the double top on the weekly chart or goes for the highs once more.
Because each timeframe points in a different direction, there’s no clear direction at the 1-hour chart (H1) level.
It’s not an environment I want to trade very actively.

Scenario A
Buying the dip after price breaks above the recent high at 193.6.
Be careful, as there’s resistance at 194 just above, but this would be a move that makes the daily uptrend much more likely.
The day-trade target is around 194.

Scenario B
Buying from the range low.
Be careful with entry timing.
The target is around 193.6

Scenario C
If price breaks below around 192.6, I’ll treat it as a sell.
However, it’s better to expect movement within the range rather than a full-fledged sell-off.
The target is around 192

Review

It played out as Scenario A.
Went long on the pullback after the upside break, and took profit when the 194 target was hit.
Just 30 minutes from entry to take profit, a stress-free trade. 30 pips

After that, there was another chance to go long from a similar price zone.
I entered judging that there was still upward momentum, but price couldn’t get above the recent high, which was turning down (making lower highs), so I made an early call and exited. Just under 10 pips
Even if you were late getting out, at worst take a breakeven exit.
The fact that price failed to make a new high and came back down means the chance of a range forming afterward increases.
In terms of market context, we’re also in the 4-hour chart (H4) resistance zone, so you always need to stay alert for a sharp drop.