2026/02/06 GBP/JPY Trade Strategy
Today's GBP/JPY call: Sell.
Following the decline since yesterday, I’m sticking with a bearish bias.
That said, looking at the daily chart, price has already dropped a fair way, so it could also form a pullback and then move higher.
If that happens, today might just end up as a range.
I see the key level on the daily chart as being around the C line, so if price breaks below it and keeps falling, I’d like to sell aggressively.
Review
It was Scenario A.
The flow was a pullback followed by a rise.
It turned back up more sharply than I expected and, instead of ranging, rallied in one go.
Around circle ①, you could already judge that it wasn’t going to drop.
If you traded according to the morning scenario, it would be a long from circle ②.
The idea was a pullback after it had touched the target once, but it broke straight through the target, made an S/R flip bounce and kept rising.
At that point you’d move the stop-loss level to breakeven and close out if there was a double top or turning down (making lower highs), but it rose one-sidedly without turning down at all.
Holding over the weekend is far too risky, especially with the election coming up, so there’s no carrying overnight, but you’d take profit at a reasonable point. You could get around 100 pips.
Here, I’ll assume take profit at the Scenario A target and record it as 25 pips.
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.
