2025/10/08 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

Price has risen quite a lot, and on the daily chart the momentum looks like it’s starting to fade.
I’m still keeping a bullish bias, but there seems to be a good chance it turns into a range.

Scenario A
If price breaks to the upside, I’ll wait for a pullback and go long.
The next key level is around 205.7, so it might be possible to aim that high.
Near-term target is around 205.2

Scenario B
This scenario looks for a bounce from around the C line and the blue line just above it.
If price drops this far, it means momentum has faded for the time being.
Target is the recent high at 204.5

Scenario C
If price breaks below the C line, I’ll switch to a bearish bias.
I’ll try to catch the move down toward the 4-hour pullback level.
Target is 203.2

Review

It played out as Scenario B.

Long from ○1, where price was turning up (making higher lows) near the blue line.
It broke through the recent high right away, so I held until the Scenario A target.
Take profit as it hit the target and started dropping sharply. 108 pips

If you couldn’t get in at ○1, a long from ○2 under Scenario A is also an option, though the risk-reward is worse.