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GBP/JPY Signaling Short to Medium-term Consolidation

Since mid August, GBP/JPY has been sharply bearish, falling from a high just above 195 down to 180 last week.

GBP/JPY 4H Chart 9/8
(click to enlarge)

This week, price is rebounding from the 180 low and is now signaling a period of consolidation. The signal is the bullish swing to 185 that broke above a falling trendline. There are also a couple of developing signs: 1) Price is pushing above the 50-period simple moving average. 2) The RSI is close to clearing above 60. 

The fact that price is back to 185 shows a break from the pattern of lower high. Now if price action shows a higher low than 180, we should have additional signs of consolidation or bullish correction ahead. If price action is going to develop a consolidation, it might take a while. Now, if price does go back to 180 and bounces up, then we have a range between 180 and 185. However, if price holds above 182, preferably above 182.50, there is a stronger chance that there is more upside risk above 185. 

Ultimately, there is upside risk towards the 190 level within the consolidation/bullish correction scenario in the medium-term.