GBP/JPY‘s sell-off eased near 195.9 support. If this support holds, the uptrend will likely resume. In this scenario, the next bullish target could be retesting the 198.9 high.
GBPJPY Technical Analysis – 23-December-2024
The British Pound encountered a strong sell-off after it peaked at the 198.9 high against the Japanese Yen. However, the bearish wave lost momentum at 195.9 support, backed by the bullish fair value gap area.
As of this writing, the currency pair trades at approximately 197.0, poised to initiate a new bullish wave.
GBPJPY Bounce Back Could Target 198.9 Peak
The immediate support that prevented the pair from dipping further is at 195.9. As long as the prices exceed this level, the trend outlook remains bullish. In this scenario, GBP/JPY could target the 198.9 resistance.
- Also read: EURJPY Bull Market Eyes 164.4 Resistance
The Bearish Scenario
Please note that the bullish outlook should be invalidated if GBP/JPY falls below the immediate support of 195.9. If this scenario unfolds, the downtrend from 198.9 will likely extend to the next support level at 194.0.