GBP/JPY intraday: the RSI is oversold
Our pivot point is at 140.21.
Comment:
the RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the pair stands below its 20 and 50 MAs (respectively at 139.98 and 140.25). Finally, the GBP/JPY has penetrated its lower Bollinger band (139.74).
Alternative scenario:
the upside breakout of 140.21, would call for 140.83 and 141.20.
Our preference:
the downside prevails as long as 140.21 is resistance.
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