The GBP/JPY pair continues to show a bearish outlook with no change in sight. The corrective rise from 180.00 appears to have completed with three waves up to 199.79, indicating a potential deeper fall towards the 183.70 support level. As long as the resistance at 197.77 holds, the risk remains tilted towards the downside even in the case of a recovery.
Looking at the bigger picture, the price actions from 208.09 are viewed as a correction within the larger rally from 123.94 (2020 low). This correction seems to be consolidating within a range set between the 38.2% retracement level of 123.94 to 208.09 at 175.94 and the high at 208.09. However, a decisive break below 175.94 would suggest a deeper correction is in progress.
It is important for traders and investors to closely monitor the key support and resistance levels mentioned above to gauge the potential direction of the GBP/JPY pair. Technical indicators and market sentiment should also be taken into consideration when making trading decisions.
In addition to the technical analysis, geopolitical events, economic data releases, and central bank announcements can all impact the movements of the GBP/JPY pair. Traders should stay informed about these factors to anticipate any potential shifts in market dynamics.
Overall, the GBP/JPY pair is currently showing a bearish bias with a focus on the downside. Traders should exercise caution and implement risk management strategies to navigate the potential volatility in the currency pair. By staying informed and adapting to market conditions, traders can position themselves for better trading outcomes in the forex market.
