2026/03/06 GBP/JPY Trade Strategy

It was Scenario B.

Long at circle ①, the first pullback after the drop from Line A.
However, since this has made a bearish shift on the short term, you could expect the rise to stall around 210.75.
With that in mind, I take profit as soon as a bearish candle appears on the 5-minute chart (M5). 13 pips

I don’t write about it much on the blog, but these kinds of small skimming trades are a way to earn profit beyond the main target.

After that, price breaks the low once, so under Scenario C I go short at circle ② on the retracement.
This is also a position taken on the assumption that price won’t keep falling, since the overall flow is to the buy side and the daily chart is starting to take a shape that looks set to rise.
Price stops falling around the recent low, so I take profit there. 18 pips

After that, long at circle ③, where price stops falling again and looks like it’s firming up a low.
Price drops without making a new high, so you either exit around breakeven or hold until it breaks the low near the circle ② take profit.
If you go long from circle ③, the stop-loss level is set below the lower blue line, so I think holding is fine too.

You can aim for another long from the higher lows at circle ④.
If you held a long from circle ③ or ④, you could take profit when price reached the 211.5 target around dawn. About 85 pips

On this day, the big-picture flow was to the buy side, and both the weekly chart and daily chart looked set to close higher. If you had that picture in mind, I think you could hold a bias of buying from support/resistance (S/R) and higher lows.