2025/08/25 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

I’m currently looking to buy, but on the 4-hour chart this is also a spot that could turn into a rally high.
On the 1-hour, price has formed a double bottom below and is moving up.
Buyers and sellers are both active here, so it’s a tricky spot.

Scenario A
If price breaks above the green line at 199, I’ll look to buy.
On the 15-minute level, the idea is to target a pullback after price clears not just the green line but also the recent high.
Target is 199.4

Scenario B
I’m treating the current price zone around 198.8 as the 15-minute range low.
That said, I’m not really sure where the support below is.
I’ll time my entry while keeping in mind that support might extend down to the next pink line around 198.6.
Target is around 199.2–3.

Scenario C
If price breaks below the current price zone, I’ll look to sell the rally.
I’m vaguely picturing a move where it forms a double top and then breaks down.
Target is 197, assuming it makes a new low.

Review

It was Scenario B.

A long from ○1 is the best entry.
On the 15-minute chart the timing looks a little early, but price is forming a double bottom on the 5-minute chart (M5), so it’s worth getting in once.
Take profit when price fails to break above the upper pink line and starts falling. 35 pips

If you couldn’t get in at ○1, ○2 is fine too.

Whichever one you entered from, close out before the data release.