Once the trendline is broken, traders may look for a retest of the previous resistance level. If the price successfully retests the resistance and holds, it could be seen as a clear signal for buy positions. This is because it would indicate that the market is confident in the newfound bullish sentiment and is willing to buy at higher prices.
In terms of fundamentals, the United Kingdom's economy has been showing signs of improvement, with positive data releases regarding gross domestic product (GDP) and employment. This has boosted investor confidence in the country's economy and could lead to increased demand for the British Pound. On the other hand, Japan's economy has been facing challenges, including a slow recovery from the COVID-19 pandemic and a declining population. This could potentially lead to a weakening of the Japanese Yen, further supporting the GBP/JPY's potential rise.
In conclusion, a break of the trendline and a successful retest of resistance, along with positive fundamentals for the United Kingdom and challenges for Japan, could lead to a rise in the GBP/JPY currency pair. However, it's important to note that this is only a possibility based on technical analysis and fundamental factors, and market conditions can change rapidly, making it necessary to continually monitor the situation.
In terms of fundamentals, the United Kingdom's economy has been showing signs of improvement, with positive data releases regarding gross domestic product (GDP) and employment. This has boosted investor confidence in the country's economy and could lead to increased demand for the British Pound. On the other hand, Japan's economy has been facing challenges, including a slow recovery from the COVID-19 pandemic and a declining population. This could potentially lead to a weakening of the Japanese Yen, further supporting the GBP/JPY's potential rise.
In conclusion, a break of the trendline and a successful retest of resistance, along with positive fundamentals for the United Kingdom and challenges for Japan, could lead to a rise in the GBP/JPY currency pair. However, it's important to note that this is only a possibility based on technical analysis and fundamental factors, and market conditions can change rapidly, making it necessary to continually monitor the situation.