the GBP/JPY was unable to break above the resistance trend line (red), which makes it likely that price has completed the bullish wave 1 (pink) price swing at the recent high. Now a bearish retracement (wave 2 pink) via an ABC zigzag pattern seems likely.
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The GBP/JPY showed good bullish momentum, which is why the upswing has been labelled a wave 1 (pink). The current retracement is a potential pullback (wave 2) as long as price stays above the bottom of wave 2 (purple) and the 78.6% Fibonacci retracement level. Price needs to break above the resistance trend line (red) before a larger breakout within wave 3 (purple) is likely.
The GBP/JPY completed 5 bullish waves (purple) in wave 1 (pink) and price could now be building an ABC (purple) retracement in wave 2 (pink). A break of the support trend lines (blue) could indicate the start of a larger wave C (purple) correction. The target of the wave C is the Fibonacci retracement levels of wave 2 vs 1.
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