2026/04/21 GBP/JPY Trade Strategy
Today's GBP/JPY call: Sell.
The daily chart says buy, the 4-hour chart (H4) says sell, and the 1-hour chart says buy, so it’s a tricky situation.
On the 4-hour chart (H4), we’re getting to a point where selling the rally looks likely to come in.
If price starts turning down (making lower highs) from here, I think a short-term short is possible.
However, the 1-hour chart is still bullish, so the idea is to target the drop down to the red line around 214.6.
After that, if the decline stalls near the red line, I’ll switch to buying. (The blue arrow scenario)
Review
It was Scenario C → a rise.
Early on, as expected, price fell to the 1-hour chart (H1) pullback low.
You could short at either of the ○1 points on the retracement after it turned down (making lower highs).
However, as I wrote in the morning, the 1-hour chart (H1) could be seen as still rising, so it rebounded sharply.
If you had set a limit around 214.6, you could have taken about 25 pips, but if you closed after seeing the rebound, it would have been around 15 pips.
After that, price broke above the B line, so it’s a long from ○2 following the 1-hour buy scenario drawn with the blue arrow.
You hold while watching out for the recent high, but since it kept making higher lows, you could hold all the way to the target.
Take profit comes where price reaches the blue target line and turns down (making lower highs). 38 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.
