After breaking our Ascending Trendline on January 15th, GBP/JPY is now retesting that same Trendline, which coincides with the Resistance Zone 1 at 142.12-142.25. Price is looking very bullish, so the retest and continuation of the downtrend, after the break of the Trendline, might not happen.
-If we see a good rejection at the Resistance Zone 1 and Trendline, look for an entry on a lower time frame, with a first target around Support Zone 1 and a second target around Support Zone 2;
-If price ends up breaking the Resistance Zone 1 and closes above it, closing also above the Ascending Trendline, at least on the 1H Chart, look for a Long position, with a first target around Resistance Zone 2.