Daily chart - GBPJPY currency pair. The wave structure is forming an upward sequence, with waves updating each other's highs. The MACD indicator is in the overbought zone, but already below its signal line. Undoubtedly, the locomotive of this upward movement is the USDJPY major pair, which is also in an ascending trend. If the GBPUSD pair were to decline, the growth here would not be as stable, as this pair is a cross rate. Based on the analysis, the USDJPY major pair is set to continue rising beyond the 2024 high. If this trend continues and GBPUSD does not decline significantly, then the growth here will inevitably continue further. Many bearish divergences on the H4 timeframe indicators have been broken, and they were weakly confirmed. There are no price resistances in its path, and how far it will go depends solely on the behavior of the major pairs. Selling against such a movement does not make sense, although a correction seems to have started after the divergences on the indicators. Moreover, the ascending line has been broken through. However, the price is still not in a hurry to fall. I don't think considering a downward entry here is wise for now. Overall, the British pound seems more inclined to weaken against the US dollar in the near future, but the Japanese yen is depreciating against the dollar. It's a tug of war. Of course, the growth cannot continue indefinitely; on the highest monthly timeframe, there is a bearish divergence on the MACD, a very rare phenomenon considering the scale of that large monthly chart. Since the price rose almost throughout 2025, it might be time for a correction in the new year, a proper retracement from the growth of the previous year. I believe confidently considering downward moves can only happen after the locomotive pair and major USDJPY update the 2024 high. Then, it will likely start a proper correction, dragging this pair along. For now, there seems to be some victory for the bears, partially working on the divergence, which might develop further. There is consolidation below the 210.70 level. Probably, there will be a test from below. Or we might continue downward without a test, which also happens often. The target is the support level at 204.76. The pound is weakening in the market, but USDJPY is pulling up, hence we are stuck in this sideways range. As long as the price is below 210.70, selling is the priority.
