GBP/JPY ST: the RSI is overbought

GBPJPY

Trading Central 2021-02-23 18:08:36

Our pivot point stands at 145.68.

Our preference: the upside prevails as long as 145.68 is support.

Alternative scenario: the downside breakout of 145.68 would call for 143.20 and 141.72.

Comment: the RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 145.16 and 142.48).

Supports and resistances:

155.76 **

154.28 *

152.79 **

151.31

148.30 last

146.66

145.68 **

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