GBP/JPY Price Analysis: Bears move in following bull rally, weekly W-formation eyed

• GBP/JPY bulls are on the lookout for a discount. 
• The bears note the weekly W-formation and prospects for a deeper correction. 

GBP/JPY has settled back into a potential hourly support zone on the hourly charts. On the longer-term time frames, there is a more complicated structure that has formed for which is illustrated in the following top-down analysis:

GBP/JPY weekly charts

Alternatively, the price could revisit the structure below for a retest and additional buy liquidity prior to running north again as follows:

GBP/JPY W-formation

Zooming in, we can see the reversion pattern more clearly in the form of a W-shape. The neckline has a high completion rate for the price to restest the zone, near to 153.40 in this case.

On the other hand, should the price break this area, then the downside will be back in favour:

GBP/JPY H1 charts

Meanwhile, the bulls may not be done yet. The hourly bullish impulse was met with a significant correction to the 38.2% Fibonacci level. This may act as support and encourage a second wind.

On the other hand, there is an imbalance of price below which could attract the price into a deeper correction prior to the next bullish accumulation: