2025/10/07 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

The uptrend is still in place.
Now is the time to judge whether the current price level will become the pullback, or whether it will pull back one more leg lower.

Scenario A
If price breaks the recent high, the uptrend continues, but it’s unclear how long that momentum will last.
The near-term target is around 203.9.

Scenario B
A scenario where price bounces off Line B.
Price has been falling in the short term, so I’m looking to buy once this decline stops.
The target is 203; if that breaks, same as Scenario A.

Scenario C
If price breaks below Line B, I’m looking to sell the rally.
This scenario aims to catch the pullback forming on the 4-hour chart.
The target is around 202.1

Review

It was Scenario C.

After the initial break below, the retracement made lower highs, so I went short at ○1.
I took profit once the target was reached and price started turning up (making higher lows). 35 pips

After that, you could go long at ○2 on the reversal.
As I wrote in the morning scenario, this is a bounce from a price level that acts as a pullback on the 4-hour and 1-hour charts, so it’s a spot where a big move up can be expected.