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The GBP/JPY currency pair staged a mild recovery last week but remained constrained within a horizontal consolidation range between 206.85 and 211.25. The initial bias for the upcoming trading week is neutral as price action searches for a clearer directional impulse. Although short-term downside risks remain plausible, robust technical support is expected around the 206.10 Fibonacci level to limit deeper losses and spark a potential bullish rebound.
From a technical perspective, market participants are monitoring a bullish divergence signal appearing on the 4-hour MACD indicator. A decisive breakout above the upper resistance boundary at 211.25 would confirm a short-term bottoming pattern, shifting market sentiment back in favor of buyers. However, until this key resistance level is breached, the pair remains vulnerable to range-bound trading and further consolidation.
Looking ahead, currency traders should watch how the price behaves near the range extremes. A sustained move above 211.25 opens the door for broader upside continuation, whereas a breakdown below 206.10 would invalidate the immediate recovery scenario. Volatility is anticipated to stay elevated as global economic data releases and central bank sentiment continue to impact risk appetite.
