Mon, Jun 05, 2023 @ 17:21 GMT
HomeContributorsTechnical AnalysisGBPJPY Surpasses the Descending Line, Suggesting More Gains

GBPJPY Surpasses the Descending Line, Suggesting More Gains

GBPJPY is extending its buying interest above the medium-term descending line and the simple moving averages (SMAs), suggesting more gains in the near term. The pair rebounded off the 158.45 support and the long-term uptrend line, with the next crucial resistance level coming from the 166.00 psychological mark.

From the technical perspective, the RSI is heading north in the bullish territory and is approaching the overbought region, while the MACD is extending its movement above its trigger and zero lines.

In the positive scenario, immediate resistance would come from the 166.00 key level ahead of the next peak of 169.30, registered in December 2022. More advances could open the way for a retest of the top at 172.20, achieved in October 2022.

On the other hand, a decline below the 200-day SMA may take the price to re-challenge the short-term SMAs around 161.70 before meeting the 158.45 support. Beneath this level, which overlaps with the uptrend line, the 155.35-156.80 zone may halt the bearish actions towards 148.80.

To sum up, the current short-term bias is bullish as the pair jumped above the significant downtrend line of the triangle as well as the long-term phase.
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