2025/07/11 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

If you use the 1-hour chart as your main timeframe, it’s a sell right now.
However, price has been building a base, so I’m planning to ride the higher timeframe flow.

Scenario A
This is the range high that price looked like it would break yesterday but didn’t.
Once it clearly breaks above it, I’ll look to buy the dip.
Target is 199.8

Scenario B
A long from price turning up (making higher lows) within the current range.
The current range leans more toward selling, so if I go long, I’ll buy as close to the bottom as possible.
Target is 199.5

Scenario C
A short I’m not too keen on given the current situation.
If there’s a clear turn down (making lower highs) and the setup looks sellable, I’d like to take it.
There are plenty of lines that could act as support, such as the blue line just below and the 190 round number.
Don’t forget the overall market is rising, so you need to stay flexible.
Target is 197.6

Review

The first trade is Scenario A at ○1.
However, price didn’t “clearly break above” here, so I don’t think you need to force an entry.
If you watch the lower timeframe closely, there is a moment where you can get in.
After that, price fails to extend, gets capped at the line around 199.4 and comes back down, so I exit. 15 pips

Even though it didn’t fully extend, this rally flips the 1-hour chart (H1) to a bullish bias as well.
You can then go long from ○2, the pullback that follows.
However, price fails to extend and drops with lower highs, so I judge it’s turning back into a range and exit. 23 pips

After that, it’s not worth watching anymore.