2025/02/26 GBP/JPY Strategy
The range is the same as yesterday, so the strategy is also basically the same as yesterday.
The big picture is to follow the move after price breaks out of the red-box range in either direction, so if you don’t want to bother with small trades, it’s fine to just leave it until the range breaks.
For now, overall, the situation is unchanged: a break to the downside is more likely.
Scenario A
Selling the rally after a break below the range low around 188.3. Target around 187.3.
Scenario B
Selling after price turns down (making lower highs) against the blue line at 188.9, which has been watched throughout the range.
This has the same basis as yesterday’s Scenario A, and the target is the same too.
Scenario C
If price shows upward movement, a long aiming for the range high.
Target is the range high at 189.5, or around 190 above it.
Review
This was another day where there was no need to trade aggressively, but there was a chance for a long entry based off the blue line at 188.9 in the middle of the range.
The risk-reward wasn’t great, and as a short-term trade it called for quick execution, so it doesn’t really seem worth the effort.
○1
A buying-the-dip point after the price turned higher, in line with Scenario C.
Here the price failed to make a new high and quickly dropped sharply, so you need to be careful not to take an unnecessary stop loss.
○2
Just when it looked like a decline from ○1, the price formed a double bottom and rose, and this is the S/R after that.
After that it gradually kept making higher lows, so I feel it would have been fine to enter somewhere around the circled areas.
The price then briefly broke above the range high, but before that there was a sharp drop from the range high, so you might have ended up with a breakeven exit there.
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
