2025/06/03 GBP/JPY Trade Strategy

The GBP/JPY trade strategy for 2025/06/03 is to buy.

The bias switched to buy shortly after 10 am JST (01:00 UTC).
Right now I’m waiting for a pullback.
In terms of market context, the 4-hour chart is still falling and the daily chart is forming a double top while turning down (making lower highs), so I don’t think this is a market that will keep rallying.

Scenario A
On this chart price has already broken out to the upside, so I’ll wait for a pullback.
I’m waiting in the hope of a reversal at line A, but just below it there’s the 193.5 round number, and on the 15-minute chart (M15) that level is acting as support/resistance (S/R) instead.
I want to wait patiently to see where the pullback forms.
Target is 194

Scenario B
If it pulls back as far as it can, it’s still a buy until it breaks below line C, so I’ll buy from the range low.
That said, given the shape of the chart, if it falls that far it’ll be a bit hard for it to rise.
Even if it falls, I think it will only go down to around 193.3, the green line near the letter B.

Scenario C
If it breaks below line C, it’s a sell again.
Target is 192.6

Review

GBP/JPY was a bit tricky.
You could go long from the red circle, but at that point the 1-hour chart (H1) was possibly making a bearish shift, so the question is whether you could hold the long…
If you read the 1-hour chart (H1) as bearish, you’d take profit for now when price reached the 193.3 line. 20 pips

USD/JPY looked like it was about to rise, so if you expected GBP/JPY to rise along with it, you might have been able to hold.
If you held, price rose without a pullback, so you’d take profit on reaching the 194 target. 90 pips