GBP/JPY Price Analysis: Bulls retain control despite consolidation
- GBP/JPY is bullish, but it might have start a consolidation period after a furious rally in October.
- The RSI in overbought territory while the MACD is green and rising.
- The pair might sideways trade between 197.00 and 199.00.
The GBP/JPY currency pair mildly declined on Wednesday as investors seem to be taking a breather. However, the outlook remains bullish and he buyers must cold the 199.00 line
The Relative Strength Index (RSI) indicator has recently crossed into overbought territory, suggesting that the uptrend in the pair may be overextended and that a pullback or correction is likely. However, the Moving Average Convergence Divergence (MACD) is green and rising, suggesting that buying pressure is rising. The overall outlook is bullish, with the pair expected to continue trading higher in the near term but a period of side-ways trade shouldn’t be taken off the table.
Traders may consider taking profit or adjusting their positions accordingly to navigate this potential market shift. That potential consolidation might take place between the 197.00 and 199.00 boundaries.
GBP/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
