2025/10/20 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

The daily chart looks like it has started to rise, but the 4-hour chart is still in a range.
For day trading, the strategy is to aim for the 4-hour high.

Scenario A

The 4-hour high is around 203.5.
Going long after a break above the 15-minute recent high doesn’t leave much room to run, so the reward isn’t worth the risk and I’ll most likely pass.
If the pullback after breaking the recent high is deep, maybe I can buy?
Target: 203.5

Scenario B

This scenario aims for a reversal after price drops to around the horizontal line near the letter B.
If price breaks below the B area, it becomes hard to buy right away.
However, I keep a bullish bias down to about the C line, so I’ll continue looking to buy, for example by waiting for a reversal on the lower timeframes.
Target: the recent high, and 203.5 if it breaks above

Scenario C

If price breaks below the C line, the flow turns downward once again.
If you take the view that the bigger trend is still up, the target is around 201.5

Review

No trade

The market was caught between the 4-hour and 1-hour charts, making it hard to read, so there’s no need to force a trade.