GBP/JPY Reaches the Overbought Region of the Market, Uptrend Unlikely

GBP/JPY Reaches the Overbought Region of the Market, Uptrend Unlikely

Key Resistance Levels: 150.000, 152.000, 154.000
Key Support Levels: 146.000, 144.000, 142.000

GBP/JPY Price Long-term Trend: Bullish
The GBP/JPY is in a smooth uptrend. In the previous price action, the pair was resisted at level 150.44 and the market slumps to $148 low. Today, the price is retesting the resistance level to break it. The market will resume an upward move if the resistance is broken. Conversely, the price may fall because the RSI has indicated that the market has reached the overbought region.

GBP/JPY – Daily Chart

Daily Chart Indicators Reading:
The pair is at level 76 of the Relative Strength Index period 14. This indicates that the market has reached the overbought region. The price has not enough room to rally on the upside.

GBP/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. For the past week, the pair has been retracing after rejection from level 150.44. This week the price has risen and retested the resistance zone. The indicators are still showing the overbought condition of the market. It is possible the pair may face another selling pressure.

GBP/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
The GBP/JPY pair is above the 65% range of the daily stochastic. The market is in a bullish momentum. The SMAs are sloping upward indicating an uptrend.

General Outlook for GBP/JPY
The GBP/JPY is trading in the overbought region as price rises to retest the resistance at $150.44. In the previous price action, the Pound fell to $148 low. It is unclear if the bulls will break the current resistance. However, the pair has no room to rally on the upside.


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.