GBP/JPY has been consolidating since last week’s low of 176.50. Let’s follow up on the price action in the short-term charts.
The 1H chart shows that the market ranged from 176.48 up to 178.43 from last week throughout the current one. The RSI breaking above 60 showed loss of bearish momentum, but failure to reach 70 showed that there was no bullish momentum.
As we get into the second half of this week, the price structure is starting to look bearish, especially since price action that failed to break above 177.75 and brought price under the 200-, 100-, and 50-hour SMAs. Now, this slight bearish bias can be invalidated if price rebounds above 177.75 during today’s US session.
If price can hold below 177.50 for the most part throughout the 4/2 (Thursday) session, we should expect the GBP/JPY to put pressure on the 176.50 area by the end of the week.
When we look at the 4H chart, we can see that the pair is essentially still bearish with price under the moving averages and the 4H RSI holding below 60, even 50 so far. It even looks like GBP/JPY has broken below a consolidation pattern and looks poised to continue south.
At this point, a break above 178.50 could open up the 180, common resistance area. However, price action in the medium-term would still be bearish unless price climbs above 181.
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