GBP/JPY Price Analysis: Bulls persist and propelled pair to fresh cycle, overbought signals arise

GBP/JPY extends its rally, hitting fresh cycle highs of around 202.50 on Monday.
Daily RSI and MACD stand near overbought territory.
Trend remains bullish but overbought conditions suggest potential corrections.

Patricio Martín FXStreet

During Monday's session, the GBP/JPY pair sustained its uptrend, hitting new cycle highs around 202.50, reaching its highest point since 2007. Despite sellers making strides earlier in the session, bringing the pair down to a low of 106.14, buyers managed to counteract and propel the pair back to fresh cycle highs.

The Daily Relative Strength Index (RSI) currently sits at 68, settling slightly below the overbought territory. The upsurge recorded in last Friday’s readings hints at remaining bullish momentum, though the swift approach to overbought conditions may suggest a potential incoming correction. The Daily Moving Average Convergence Divergence (MACD) continues to display rising green bars, implying that the bullish momentum is still in the play, albeit approaching a crest.

GBP/JPY daily chart

In summary, the GBP/JPY pair's solid performance on Monday underpins a broader bullish trend. The trend's positive outlook is validated by the pair's position above the 20-day, 100-day, and 200-day Simple Moving Averages (SMAs). However, as current indicators suggest over-extended movements, traders might brace for a likely correction event.

If the pair falls below the immediate support level set at 202.00, followed by the 201.00 and 202.20 levels (20-day SMA), it would likely seek new support thresholds at around the 200.00 psychological area. Conversely, resistance is seen near the psychological mark of 203.00 and further at 203.50, in case the bulls persist.

GBP/JPY

Overview
Today last price	202.6
Today Daily Change	0.52
Today Daily Change %	0.26
Today daily open	202.08

Trends
Daily SMA20	200.16
Daily SMA50	197.13
Daily SMA100	193.66
Daily SMA200	188.78

Levels
Previous Daily High	202.09
Previous Daily Low	200.48
Previous Weekly High	202.09
Previous Weekly Low	199.06
Previous Monthly High	200.75
Previous Monthly Low	191.37
Daily Fibonacci 38.2%	201.47
Daily Fibonacci 61.8%	201.09
Daily Pivot Point S1	201.01
Daily Pivot Point S2	199.94
Daily Pivot Point S3	199.4
Daily Pivot Point R1	202.62
Daily Pivot Point R2	203.16
Daily Pivot Point R3	204.23

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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