2025/10/16 GBP/JPY Trade Strategy

Today's GBP/JPY call: Sell.

The 4-hour is a sell and the 1-hour leans toward a buy, so it’s a tricky setup.
For now I think it’s fine to look at it from the sell side, but it’s also fine to wait until price breaks out one way or the other.

Scenario A

Buying the dip after a break above the recent high.
The idea is to aim for the 4-hour rally high, with a target of 203.1

Scenario B

This scenario is selling from the top of the current range.
However, on the 1-hour this zone is a buy.
So if you sell from a half-hearted level, you can get an adverse move, so be careful.
If holding a position makes you uneasy, it’s better to stay out of this price zone.
If you do sell, the target is the C line at 202.1, the range low.

Scenario C

If price breaks below the C line, the 1-hour also turns into a sell, so I want to wait for a retracement and sell aggressively.
Target is 201.4

Review

It played out as Scenario A.

The long entry is from the red circle, which is the pullback after price broke above Line A.
There are about two chances.

After entry, price goes straight to the target, so it’s fine to hold.
However, it starts turning down (making lower highs), so that’s where you close out. 55 pips