2026/07/16 GBP/JPY Trade Strategy

Today's GBP/JPY call: Wait and see.

Price has rallied sharply, so I need to wait and see for a bit before I can make the next move.
There are no horizontal levels either.
The last time price was in this price zone was 2008, during the Lehman shock, but it dropped sharply back then too, so even going back to the charts from that period, there’s nowhere to draw a horizontal level on the 4-hour chart (H4) or higher timeframes.

For now, a rough guide is the round number around 218.5, which is near the half retracement.
On the daily chart there’s a big bullish candle, and there’s a chance we get another bullish candle today. In that case, I feel price could find support in the price zone I marked in blue and continue higher.

Review

It dropped.

As expected, the price zone marked in blue was clearly in play.
The red circle, where the retracement came after the drop, was an easy spot and setup to enter.
If you had your target set and waited for it, this wasn’t a difficult trade.