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.