GBP/JPY intraday: the RSI is oversold
Our pivot point is at 131.57.
Comment:
the RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the pair stands below its 20 and 50 MAs (respectively at 131.77 and 131.80). Finally, the GBP/JPY is trading below its lower Bollinger band (standing at 131.00).
Alternative scenario:
above 131.57, look for 132.15 and 132.50.
Our preference:
the downside prevails as long as 131.57 is resistance.