2025/11/06 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

The daily chart and 4H are down and the 1H is up, but for now the bigger trend is down.
For day trading, the current range is a buy.

Scenario A

If price breaks above Line A, the 4H bearish bias starts to look shaky.
At the day-trading level, I’ll wait for a pullback and look to go long.
Target is around 202

Scenario B

I see the lower end of the current range at around Line B.
If price holds firm around here, I’d like to buy.
Target is around Line A at 201.3

Scenario C

If price breaks below Line B, I’ll treat it as a bearish shift again and go for selling the rally.
In that case, I’d like to target the 4H recent low at 199.

The current price zone is a candidate zone for selling the rally on the 4H.
In that sense, selling where price fails to make a new high, as shown by the blue arrow, is also a good strategy.
Under day-trading rules that follow the 1H, this would be countertrend trading, but given the market context it’s a valid option.

Review

It played out as Scenario C.

In the end, price bounced off the next blue line down, so this would have been a small profit or a breakeven exit.

If you were aiming for the 4-hour selling-the-rally setup marked by the blue arrow in the morning scenario, I think you could have gone short from the blue circle.