GBP/JPY Technical Outlook

The GBP/JPY currency pair has displayed a clear ABCD price pattern, with a strong initial bullish impulse (A-B) breaking above a key resistance level. Based on the current price action, we can make the following observations:

Bullish Impulse (A-B)
The market has seen a clear first impulse to the upside (A-B), indicating growing bullish momentum in the pair. This initial move higher suggests the potential for further bullish continuation.

Expected Retracement (B-C)
We can now anticipate a minor retracement in price, with the pair potentially pulling back to test a previous support level around 197.430 (C). This pullback would offer an opportunity for bullish traders to enter long positions and capitalize on the expected continuation of the uptrend.

Bullish Continuation Targets (C-D)
Should the retracement be completed, we expect the GBP/JPY to resume its bullish move and target the next major resistance level at 198.419 (D). Beyond that, the pair could potentially extend its gains further towards 198.863, which would serve as an attractive take profit level for swing traders.

Disclaimer
Please note that this market analysis is for informational purposes only and does not constitute financial advice. It’s crucial that you perform your own due diligence, analyze the markets thoroughly, and make trading decisions that align with your personal risk appetite and strategy.