The GBP/JPY pair saw significant gains in Friday’s session, reaching multi-year highs at 199.90, indicating strong buying pressure in the market. However, the daily RSI suggests that the pair is overbought, hinting at a potential correction in the near future. Despite this, the overall outlook remains bullish for the cross as buyers continue to dominate.
In the daily chart, the RSI has moved into overbought territory, signaling strong buying sentiment but also a potential correction ahead. The MACD shows flat green bars, indicating positive momentum despite a stable trend, possibly leading to consolidation for the pair in the upcoming sessions.
On the hourly chart, the RSI shows fluctuations with a current value of 61, which is positive but less intense compared to the daily chart. The MACD histogram also displays steady positive momentum with flat green bars, similar to the daily chart, suggesting a continuation of the current trend.
Looking at the GBP/JPY’s position relative to its SMAs, the pair is above the 20, 100, and 200-day SMAs, indicating a bullish trend for both short and long-term scenarios. This reinforces the positive outlook for the GBP/JPY pair despite the possibility of a technical correction in the near term.
In conclusion, the GBP/JPY pair has reached multi-year highs, indicating strong buying pressure within the market. While the daily RSI suggests an overbought condition and a potential correction, the overall outlook remains bullish with the pair above key SMAs. Traders should continue to monitor the hourly and daily charts for any signs of consolidation or a reversal in momentum.
