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Technical Analysis – GBP/JPY loses momentum

GBP/JPY 23/11/18 | EconAlerts

GBP/JPY loses momentum; RSI signals further losses.

GBP/JPY is declining considerably today, diving below the 40-simple moving average (SMA) in the 4-hour chart. In the very short-term the price seems to be strongly negative, while in the daily chart the pair remains in a consolidation area over the last three months with upper boundary the 149.30 resistance and lower boundary the 142.70 support.

Technically, the RSI indicator is pointing south near the 50 level, while the MACD oscillator is rising, approaching the zero line. However, the 20- and 40-simple moving averages (SMA) are in process to create a bullish crossover in the near future.

Immediate support is coming from the 144.00 psychological level, which it reached on Wednesday, while even lower and a drop below the 23.6% Fibonacci retracement level of the down-leg from 156.60 to 139.90, would send prices until 142.70.

If there is a successful attempt higher, the next resistance would be at the 38.2% Fibonacci of 146.20. More advances could drive the price until the next significant barrier of 50.0% Fibonacci around 148.15.

Overall, the neutral picture in the medium term looks to last for a while longer after prices failed to create a rally to exit from the range.

GBP/JPY 23/11/18 | EconAlerts



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Source: XM

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