2025/10/21 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

It’s starting to look like it might rise for now.
The 4-hour chart is in a downtrend, so I’m aiming for a rise up to around the recent high, roughly 203.5.

Scenario A

It looks like price has broken out of the 15-min range, but I’d like to wait a little longer before making a call.
The pullback is too shallow to buy from around here, so I’ll wait until I’ve confirmed that Line A is holding firm.
The target is 203.5, but I want to keep in mind that it could stall just short of that, around 203.1.

Scenario B

This scenario is price moving back into the range, forming a pullback, and then rising.
Since it’s a range, this kind of setup is easier to buy.
The target is the same as Scenario A.

Scenario C

Selling the rally after a break below the recent low.
I have a feeling this could turn into a somewhat tricky situation to trade, but the near-term target is around 201.4

Review

It played out as Scenario A.

There were two opportunities.
○1 is a long from where the first pullback formed.
Price made a new high and then came back down, so take profit when the lower timeframe pulls back. 27 pips
After entry, price got pushed down a little, possibly due to a political event, but with a proper stop-loss level you wouldn’t have been stopped out.

After that, when price came back to Line A once more, go long at ○2, where the short-term decline stalled.
It rose without any real pause and reached the target of 203.5.
If you had set a limit order slightly before that level, it would have taken profit automatically. 108 pips