Last week, GBP/JPY continued its upward trend and reached a high of 206.42. This week, the initial bias suggests further rally. A strong break above 206.56 could lead to a target of 210.17. However, if the price falls below 204.97, there may be a deeper pullback.
Looking at the bigger picture, the long-term upward trend is still intact. The next target is projected to be at 211.62. The outlook remains positive as long as the support at 197.18 holds, even in the event of a significant pullback.
In the longer term view, the rise from 122.75 in 2016 is considered to be the third leg of the pattern from 116.83 in 2011. The next target is set at 231.96. The overall outlook remains bullish as long as the support at 178.32 holds, unless a clear reversal pattern emerges.
It is important for investors and traders to keep an eye on the key levels mentioned in the analysis to make informed decisions when trading GBP/JPY. The currency pair has shown strength in the recent weeks, but it is always crucial to monitor any potential changes in trend or market sentiment. By staying updated with the latest analysis and predictions, traders can navigate the forex market more effectively and increase their chances of success.