2026/05/18 GBP/JPY Trade Strategy
Today's GBP/JPY call: Sell.
Will it keep falling in line with the daily chart trend, or will there be a retracement rally first?
If it keeps falling, one likely pattern is that it fails to break above the green line near the letter B and then drops.
If it breaks above B, it turns into a range on the 1-hour level, so I think it may take a bit of time.
Review
It was Scenario A.
Go long at circle ②, the pullback after the break above Line A.
Price climbed in waves all in one go, so there wasn’t really any point to take profit along the way.
Take profit once it rallied all the way up to the 4-hour rally high and the move stalled. 115 pips
You could also treat the area around 3 as a pullback and buy there, but buying from there puts your stop-loss level further away.
That worsens the risk-reward, so buying at circle ②, the 1-hour-level pullback, is the better choice.
In the morning I had a bearish bias, but as time went on price was firming up support, so going long from circle ① is a valid option.
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.
