GBPJPY: floating at the top – is a drop being loaded?

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GBPJPY is hovering around 198.91 after an impressive rally, but now it's trapped between two key zones: 199.85 – a resistance level that keeps rejecting price, and 198.20 – a fragile support below. The price action reveals a tense sideways pattern, like a spring coiling up before release.

What’s concerning is that buyers have attempted to break above the high multiple times and failed – and each failure comes with weaker rebounds. With the Bank of England shifting toward a “pause” stance and the yen gaining mild support from rising risk-off sentiment, the market is starting to lean toward a correction.

If price breaks below 198.20, it could mark the beginning of a deeper slide back toward the lower boundary of the channel. Don’t be fooled by the silence – sometimes, calm is the precursor to a sharp fall.

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