The GBP/JPY currency pair is currently experiencing range-bound trading, with a neutral intraday bias. While a further decline is possible, strong support is anticipated around the 206.10 Fibonacci level, which should trigger a rebound. The 4-hour MACD indicator shows a bullish divergence, suggesting that a firm break above the 211.25 resistance level could signal a short-term bottoming out.
However, a decisive break below the 206.10 support level would have significant bearish implications. In the broader context, the price action from the 219.56 high is seen as a correction of the uptrend that began from the 2025 low at 184.35. A deeper fall could extend to the 38.2% retracement of the 184.35 to 219.56 range, which is also at 206.10.
Strong support is expected at this level to initiate a rebound. However, a decisive break below 206.10 would increase the likelihood of a larger trend reversal, targeting the 61.8% retracement at 197.80.