GBP/JPY Technical Outlook and Scenario Analysis

As we examine the GBP/JPY pair on the 4-hour chart, we're presented with a compelling technical confluence that beckons the question: Which path will the market favor?

The price has recently respected a rising support trendline, which has been guiding the uptrend since the rise from the lows around 178.00. This trendline serves as a dynamic level of support, underpinning the bullish bias in the market.

Currently, the price hovers just above a significant horizontal support level at 184.80, which aligns with the psychological round figure and has previously acted as both support and resistance, lending it increased validity as a pivotal zone.

We're at a crossroads, and two primary scenarios are illustrated:

Bullish Continuation (Red Path): Should the price maintain its stance above the support trendline and the 185.00 level, we could witness a bullish resurgence, aiming for previous highs and beyond, potentially targeting the 187.00 resistance area. This scenario would align with the prevailing uptrend and the 'buy on dips' strategy often employed in such technical landscapes.

Bearish Reversal (Blue Path): Conversely, a break below the trendline and the 185.00 support could signal a shift in market sentiment, triggering a bearish reversal. This could set the stage for a deeper retracement towards the next substantial support zone around 179.00-180.00, where buyers might emerge.