Bullish Reversal Setup After Descending Trendline Break

GBP/JPY is attempting to reverse its recent downtrend after finding strong support around the 210.00 demand zone. The pair has been trading beneath a descending trendline, but price is now testing this dynamic resistance, suggesting that buyers are trying to regain control.

Market Structure
The previous bearish trend created a series of lower highs and lower lows.
Price found solid support near 210.00, where buyers stepped in aggressively.
The pair is now consolidating beneath the descending trendline, forming a potential breakout structure.
The Ichimoku Cloud remains overhead, making 213.60–214.00 the first major resistance area.
Bullish Scenario

A confirmed breakout and close above the descending trendline would signal a shift in short-term momentum.

Potential upside targets:

Target 1: 212.60–213.00
Target 2: 213.80–214.00 (major resistance)
Target 3: 216.00–216.80
Bearish Scenario

If price fails to break the trendline and is rejected, sellers could regain control.

Downside targets:

210.50
210.00
Below 210.00 would expose 209.20.
Trading Plan
Bias: Bullish (only after confirmed trendline breakout)
Entry: On a 45-minute candle close above the descending trendline.
Stop Loss: Below 210.00 or below the latest swing low.
Take Profit 1: 213.00
Take Profit 2: 214.00
Take Profit 3: 216.00
Conclusion

GBP/JPY is approaching a critical technical point where the descending trendline meets recovering bullish momentum. A confirmed breakout above the trendline would increase the probability of a rally toward 214.00 and potentially 216.00. Until then, the pair remains in a recovery phase, and traders should wait for breakout confirmation before committing to long positions.