2025/07/18 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

I’m looking to buy, but price is still sitting in the resistance zone.
I’ll be buying on the assumption that it breaks above the high, but I also need to plan for the case where it doesn’t.

Scenario A
This is a setup I don’t really want to jump into aggressively.
If it fails to break the resistance at the blue line, I don’t think there will be much profit to take.
If it does break through, the target is around 200.6

Scenario B
A move higher after price settles into a range.
This one is still realistic.
The target is 199.8

Scenario C
Selling the rally after price breaks below the low.
The target is 199

I’d really like it to make up its mind soon about whether it’s going to break out or not.

Review

It was Scenario B.

I go long as price bounces off the pink line as support.
It makes a new high, so I hold, but in the end it can’t break above the blue line, so I take profit. 24pips

After that, there’s no buy or sell setup.

Reading it as Scenario A, going long from the blue circle is also an option.