GBP Sterling Price Outlook: GBP/JPY Exhausted Bearish Momentum
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GBP/JPY Price Forecast, Charts and Analysis
- GBP Sterling looking ahead to the UK’s GDP Q1 final reading tomorrow.
- GBP/JPY bearish momentum may be at its end.
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GBP/JPY – The Sellers Holding Back
On June 3, GBP/JPY opened with exhaustion gap suggesting the bearish momentum may be at its final stage. The price on June 17 declined and on the following day printed its multi month low at 135.38.
This week the Relative Strength Index (RSI) rose from 31.5 to 40 reflecting the lack of momentum to continue sending the price lower.
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GBP/JPY DAILY PRICE CHART (Mar 7, 2019 – JUnE 27, 2019) Zoomed In
GBP/JPY DAILY PRICE CHART (Oct 13, 2016 – JUnE 27, 2019) Zoomed OUT
Looking at the daily chart we notice GBP/JPY on June 18 closed with a bullish Doji pattern, then started to move ineffectively. Today, the pair rallied to its highest level in nearly two weeks however, the price has to pass 138.32 threshold to talk about a possible bullish move.
A close above 139.00 could be a positive sign and might lead GBP/JPY towards 140.50. However, the weekly resistance at 139.90 needs to be considered.
On the flip-side a close below 135.55 may embolden the sellers to press towards 133.40. Nonetheless, the weekly supports underlined on the chart need to be watched along the way.
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GBP/JPY Four-HOUR PRICE CHART (, 2019- JUN 19, 2019)
Looking at the four-hour chart, we notice on June 18 GBP/JPY rebounded from 135.38 and since then consolidated in a trading range 135.78 – 137.19. Therefore, a break below the low end of this range could send the price towards 134.38 contingent on clearing the weekly support zone and level highlighted on the chart.
On the other hand, a break above the June 13 high at 137.78 may rally the price towards 139.00 although, the weekly resistances underlined on the chart should be kept in focus.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.