GBP/JPY Price Outlook – Trade Setup📊 Technical Structure
FOREXCOM:GBPJPY GBP/JPY remains within a well-defined ascending channel on the 240-minute timeframe. Price has recently pulled back from the upper resistance band and is now stabilizing around the 212.12–212.61 support zone, which aligns with the channel midline and previous structure support. As long as price holds above this zone, the broader bullish structure remains intact, favouring a continuation higher toward the channel top.
🎯 Trade Setup (Bullish Bias)
Entry Zone: 212.12 – 212.60
Stop Loss: 211.88
Take Profit 1: 214.33
Take Profit 2: 214.86
Risk–Reward Ratio: Approx. 1 : 3.34
📌 Invalidation:
A sustained break and close below 211.88 would invalidate the bullish setup.
🌐 Macro Background
While short-term GBP sentiment remains pressured by UK political uncertainty and expectations of further BoE rate cuts, downside momentum has been limited. At the same time, JPY strength driven by BoJ normalization expectations is increasingly priced in. This divergence supports a range-to-trend continuation structure, where technical support plays a more dominant role in guiding near-term price action.
🔑 Key Technical Levels
Resistance Zone: 214.33 – 214.86
Support Zone: 212.12 – 212.61
Bullish Invalidation: Below 211.88
📌 Trade Summary
GBP/JPY is consolidating above a key structural support within an ascending channel. As long as price holds above the 212.12 area, the bias remains buy-on-dips, targeting a move back toward the upper resistance zone.
⚠️ Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.
Long
