Tue, Jan 31, 2023 @ 23:28 GMT
HomeContributorsTechnical AnalysisGBPJPY's Guiding Forces Fade but Bearish Bias Lingers

GBPJPY’s Guiding Forces Fade but Bearish Bias Lingers

GBPJPY is trading around the mid-Bollinger band at 150.23, curbed by the 50-period simple moving average (SMA), which continues to hamper advances even after the bounce around the 149.00 mark. The falling SMAs continue to endorse the pair’s negative trajectory that recently softened on its approach towards key support bands, which are forming a congested base for the broader uptrend.

Currently, the short-term oscillators are not indicating a definitive direction in the pair. The MACD and its red trigger line are just beneath the zero threshold, while the RSI is flirting with the 50 neutral level. The positively charged stochastic oscillator is reflecting the latest surge in buying interest but additional gains in the price are questionable as upside momentum remains somewhat limited.

If the price oversteps the 50-period SMA at 150.55, the next upside constraints could commence at the 151.12 high and the adjoining upper Bollinger band. If the price manages to move higher, the nearby 151.43-151.68 resistance band may then attempt to discourage buyers from challenging the 152.08-152.51 resistance border. Should this barricade fail to suppress advances, the price may seek out the 153.00 handle and the 200-period SMA at 153.40.

If the 50-period SMA redirects the pair below the mid-Bollinger band at 150.23, the price could turn its focus to the lower Bollinger band and the 148.94-149.21 base. If the price dips past the September 9 trough of 148.94, the 148.45-148.76 support band could come into focus. Should selling interest persist, the 148.10 barrier could then step into the spotlight ahead of the 147.27-147.87 support foundation, which took shape throughout February 2021.

Summarizing, GBPJPY is sustaining a bearish bearing below the SMAs and the 152.08-152.51 barrier. If the price dives below the 147.27-147.87 border, this could trigger concerns for the broader uptrend.

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