GBP/JPY Bulls Need to Catch Their Breath
Quoting now back below its 50-period SMA on 4H charts, GBP/JPY has steady unwound last week's gains.
The
downswing in the pair has brought RSI into a weak technical position
below its 35% level. This is considered oversold territory in an
otherwise bullish context.
While still above its 200 SMA, buyers
may try to keep the upward trajectory in place. If taken out, the slide
below the 200 moving average would suggest an increased risk that the
corrective phase has developed into a new downward trend. A close back
above the 50 SMA would delay the current stumbling and spur ideas that
another leg higher is likely.
