The GBP/JPY pair trades at 191.65, registering a 0.57% gain. While the overall sentiment remains bullish, overbought conditions on the hourly chart suggest a potential for profit-taking in the near term.
Daily Chart: Bullish Bias, But Overbought RSI May Limit Upside
The daily chart indicates a continued bullish trend. The Relative Strength Index (RSI) lies above 50, signaling buyer dominance, but remains below extreme levels, unlike the hourly RSI. The Moving Average Convergence Divergence (MACD) displays decreasing red bars, hinting at some weakening of bearish momentum. However, the upward trajectory may be somewhat limited as overbought RSI readings could trigger short-term profit-taking.
Hourly Chart: Overbought and Ripe for Correction
The hourly chart presents a more extreme bullish picture. The RSI has ventured deep into overbought territory, suggesting a downward correction may be imminent. The Moving Average Convergence Divergence (MACD) adds to this by showing rising green bars that indicate strong bullish momentum.
Overall Outlook: Bullish but Brace for a Dip
The GBP/JPY pair maintains its bullish bias across multiple timeframes, supported by its position above all major Simple Moving Averages (SMAs). However, a short-term pullback is likely due to overbought conditions, particularly on the hourly chart.
