GBP/JPY: The Pound's Power Play

GBP/JPY is poised for a bullish move due to several key factors. First, the GBP is showing strength against the JPY, supported by recent positive economic data from the UK, including stronger-than-expected GDP growth and rising consumer confidence. Additionally, the Bank of England has indicated a more hawkish stance on interest rates, which is likely to continue supporting the Pound. In contrast, the Japanese Yen remains under pressure due to Japan's ongoing ultra-loose monetary policy, with the Bank of Japan maintaining low interest rates and a weak currency outlook.

The price action on the 15-minute chart shows that GBP/JPY has recently bounced off a strong support level near 196.80, confirming the potential for a continued upward movement. A break above the recent consolidation range indicates a higher probability of the pair testing the next resistance zone around 199, making this a solid target for profit-taking.

The entry level at 197.132 represents a strong point to take advantage of bullish momentum, with the stop loss set just below the key support at 196.800 to protect against potential downside risk. The take profit target of 199 is aligned with a reasonable risk-to-reward ratio, as this level represents the next major resistance point.

Overall, the combination of favorable GBP fundamentals, weak JPY fundamentals, and a solid technical setup supports the view that GBP/JPY is likely to continue its bullish trajectory toward the 199 level, making this a promising trade opportunity with a manageable risk profile.