GBP/JPY Price Forecast: 217.00 caps bulls as RSI fades

GBP/JPY trades flattish for the third straight day as buyers have failed to decisively crack the 217.00 level, which could open the door to further upside. This pushed the cross-pair to the mid-point of the trading range of 216.08-216.85,

GBP/JPY Price Forecast: Technical outlook

The daily chart shows that GBP/JPY is neutral-biased, even though prices are above the 50-, 100-, and 200-day Simple Moving Averages (SMAs), each at 215.96, 215.09, and 212.95, respectively.

Momentum is measured by the Relative Strength Index (RSI), which also suggests that the GBP/JPY is bullish, but it has faded as the index approaches the 50-neutral level. Hence, the cross-pair is poised for sideways action.

For a bullish continuation, the first resistance is 217.00. A breach of the latter will expose the July 9 high at 218.01, followed by the yearly high of 219.61.

On the other hand, a breach of the 50-day SMA at 215.96 opens the path to challenge the 100-day SMA ahead of 215.00. Below the next support is the 214.00 psychological level.

GBP/JPY Price Chart – Daily