2025/10/10 GBP/JPY Trade Strategy

Today's GBP/JPY call: Sell.

The 1-hour chart says sell, but on the 4-hour chart this is an area where buyers step in from below, so price has stalled.
The basic strategy is to sell from above.

Scenario A
If price breaks above Line A, I’ll consider that it may be heading higher again.
Wait for a pullback and look to go long, with a target of 204.5

Scenario B
If price can’t break above Line A, I’ll sell.
Selling right near Line A would be ideal, but the high marked with the light blue line also concerns me.
There also seems to be a pattern where price drops without breaking above that area.
Target is Line C.

Scenario C
If price breaks below Line C, there’s a chance a full-scale correction gets underway.
Eventually it might fall to around the daily chart key level of 200.6.
For a day trade, the target is around 202.1

Review

It was Scenario C.

This was the retracement after the break below Line C, but since the short-term flow had turned upward, I waited for it to start turning down and went short at the red circle.
It didn’t reach the target, so I took profit when the decline stalled around the 202.5 round number. 62 pips