2025/12/16 GBP/JPY Trade Strategy

Today's GBP/JPY call: Sell.

My bias is to sell, but I’ll decide on a trade after seeing the results of the upcoming UK data release.
Price is at a level that could become a pullback on the daily chart, so the downward momentum is also fading.

If price breaks below the area around C, I think it will drop another leg, so I’ll wait for an entry opportunity with that in mind.
If it rises, it will turn into a range, so I don’t think a sudden sharp rally is likely.
This is a situation where I can just wait patiently for an opportunity without rushing.

Review

It played out as Scenario A.

But… it was a bit of a tough one to get into.
In the end it went exactly according to the scenario: buy the bounce off Line A, then take profit where it stalled at the 207.8 target. 45 pips.
That said, since it was a range, I’d normally wait a little longer for the line to prove itself.