2025/11/18 GBP/JPY Trade Strategy

Today's GBP/JPY call: Buy.

Simply buying in line with the higher timeframe flow.
Until a little while ago it was a short-term sell, but a long lower wick formed on the 1-hour chart, and it looks like things are getting set up for a move higher.

Scenario A

A long scenario from the pullback after price breaks above the recent high.
Watch out for the blue line around 204.7; the target is 205.3.

Scenario B

Go long once price dips a little from here and forms a pullback.
It won’t necessarily come all the way down to the C line, so I’d like to aim for it while watching the lower timeframe price action.
The target is the same as Scenario A.

Scenario C

A pattern where price heads lower to form a deeper pullback.
If it breaks below the C line, I’ll think about selling for the time being.
The idea is to catch the drop that forms the pullback on the 4-hour chart (H4), with a target around 203.5.

Review

It was Scenario B.

It was a day when the market barely moved, but if you held the bias of “buy unless price breaks below Line C,” the market context was simply about buying at a level with a solid reason.
I think buying at either of the red circles is a good approach.
Given the lack of momentum and the time of day, it’s fine to close out when a bearish candle forms after reaching the blue line.
Buying at the first red circle would have made 55 pips, and at the later red circle, 67 pips.