Sterling is at a turning point…has the real fall begun?

Over the past period of time, the pound has shown a strong upward trend and continued to reach higher peaks until it reached a strong supply zone near 206.20-206.70.
There was a very clear rejection candle in this area, and then the price dropped sharply… which was the first sign that buyers were starting to weaken.

The pair is now entering a bearish correction in an uptrend, but the trend pattern suggests that the decline may continue deeper into demand zones before we see a fresh rebound.

Overall trend: Bullish
Current Status: Strong Bearish Correction

🔴Strongest scenario (corrective sell-off):

The market came back and tested a small display area around:
205.20 – 205.60

This is a great area to continue descending.

Sell ​​zone: 205.20 – 205.60

Stop loss: above 205.90

Target 1: 204.20

Target 2: 203.40

Goal 3: 202.60

RR is very good

Short to medium term selling opportunities.

🟢 Purchase scenario (if correction ends):

The actual demand area where the currency pair can resume its rise:

Recent areas of strong demand:

204.10 – 204.40
Prices may rebound in the short term.

The strongest areas are as follows:

202.40 – 202.80

This is an excellent buying opportunity from a clear correction bottom.

Buy entry: 202.40 – 202.80

Stop loss: below 202.00

Target 1: 203.80

Target 2: 205.00

Target 3: 206.20

If the price reaches this price, it is a gold purchase.

💡Conclusion:

GBP/JPY is currently exhibiting a clear bearish correction pattern after strong gains.
✔ Selling in the 205.20 – 205.60 area makes sense
✔ The best buying time is 202.40 – 202.80

Otherwise…the market is very volatile and there is no direct opportunity.

sign:

Engineering/Taher Elmonier – TPS College