GBP/JPY Technical Analysis: Market is most oversold since August 2017

• The GBP/JPY 14-day RSI shows oversold conditions.
• A temporary bounce could be in the offing.

Daily chart

Spot rate: 143.90

Daily High: 144.29

Daily Low: 143.60

Trend: Bearish, but minor correction could be in the offing.

Resistance

144.29 (resistance on hourly chart)

144.92 (50-hour MA)

145.27 (May 25 low)

Support

143.60 (support on hourly chart)

143.21 (100-week MA)

143.19 (recent low)

Currently, the 14-day RSI stands at 26.17 - the lowest level since August 23, when the RSI stood at 24.89. A reading below 30.00 indicates oversold conditions. So a minor pullback could be on the cards, however, the long-term outlook remains bearish as discussed.