Technical Analysis – GBPJPY extends sideways pattern below 50-day SMA
October 27, 2023 8:26 am
GBPJPY rebounded strongly from a 3-month low
Gets stuck in a range after the 50-day SMA curbs advance
RSI and MACD are hovering around their neutral regions
GBPJPY had been in a prolonged uptrend since January, posting an eight-year high of 186.75 on August 22 before experiencing a pullback. Even though the pair staged a solid recovery, it has been rangebound for the past two weeks, with the narrowing Bollinger Bands hinting at low volatility ahead.
Should the price march higher and reclaim its 50-day simple moving average (SMA), immediate resistance could be met at the July high of 184.00, which also acted as a strong ceiling in October. Piercing through that wall, the pair could revisit its eight-year high of 186.75. If that hurdle also fails, the price could post fresh multi-year highs, where the 190.00 psychological mark might curb further advances.
On the flipside, should selling interest intensify, the bears could initially attack the 180.72 support zone. Even lower, the pair might challenge the 179.45 hurdle, which held strong both in July and October. Breaking below that level, the price could descend towards the October bottom of 178.05.
In brief, GBPJPY has been directionless for the past two weeks as the short-term oscillators continue to reflect a neutral tone. Hence, a break above the 50-day SMA is needed to shift the outlook back to positive.
GBPJPY rebounded strongly from a 3-month low
Gets stuck in a range after the 50-day SMA curbs advance
RSI and MACD are hovering around their neutral regions
GBPJPY had been in a prolonged uptrend since January, posting an eight-year high of 186.75 on August 22 before experiencing a pullback. Even though the pair staged a solid recovery, it has been rangebound for the past two weeks, with the narrowing Bollinger Bands hinting at low volatility ahead.
Should the price march higher and reclaim its 50-day simple moving average (SMA), immediate resistance could be met at the July high of 184.00, which also acted as a strong ceiling in October. Piercing through that wall, the pair could revisit its eight-year high of 186.75. If that hurdle also fails, the price could post fresh multi-year highs, where the 190.00 psychological mark might curb further advances.
On the flipside, should selling interest intensify, the bears could initially attack the 180.72 support zone. Even lower, the pair might challenge the 179.45 hurdle, which held strong both in July and October. Breaking below that level, the price could descend towards the October bottom of 178.05.
In brief, GBPJPY has been directionless for the past two weeks as the short-term oscillators continue to reflect a neutral tone. Hence, a break above the 50-day SMA is needed to shift the outlook back to positive.
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