2025/08/08 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

Technically it’s a buy, but looking at the daily chart, it feels like price may turn around (head lower) from around here.
If I’m going to buy, I want to wait for a proper pullback first.

Scenario A
If price breaks higher, I’ll keep following it with buys, but this isn’t a situation where buyers are piling in aggressively.
The target is around the blue line above at 198.3.
If it clears that, up to the daily chart high at 199.

Scenario B
If I wait for a pullback to buy, it would be near the bottom of the current range around 197.4.
However, this isn’t a spot where a horizontal line could be drawn in the past, so it’s a bit weak as a reason to buy.
The red zone below it is a price zone where a short-term bearish bias and buying the dip on the 1-hour chart intersect.
My bias is basically bullish, but it’s a price zone I’d rather not touch much.
Target: 198

Scenario C
A break below 197.2 turns my bias bearish.
There’s no horizontal line here either, but it’s a place where it’s fine to draw one.
If price breaks below here, the daily chart flow would be to head for the low again.
It’ll probably be next week before this can be targeted with day trades…
Target: 196.9

Review

It was Scenario A.

The level from the morning scenario turned out to be a perfect pullback, so this was a long riding the upward move on the 1-hour chart (H1).
On the 15-minute chart (M15), I took profit on the rally that followed a move that made me think, “Has it turned down (making lower highs)?” 50 pips