GBP/JPY Faces Bearish Chart Formation with Mild Gains: Analysis

At the start of the London trading session on Monday, GBP/JPY shows a slight increase in value, hovering around 166.50. However, the cross-currency pair is facing a challenge in maintaining its upward momentum over the past four days, as it is currently caught in a bearish chart pattern, known as the Head and Shoulders pattern.

If the dynamic trendline of the pattern, referred to as the "Neckline," is broken, this could confirm a downside trend for the pair. However, if the price manages to rise above the level of the Right Shoulder, it may indicate a long setup.