- GBP/JPY is eyeing corrective rally on a bullish divergence of the 4-hour chart indicator.
- The pair could test the 10-day moving average, currently placed just above 141.00, in the next few hours.
GBP/JPY is currently trading at 140.67 and could soon revisit the psychological resistance of 141.00.
The currency pair rose to a high of 141.73 in the US trading hours on Tuesday only to close with moderate gains at 140.38.
Despite the pullback, the bullish divergence of the 4-hour chart relative strength index (RSI) is valid. Further, the daily chart RSI is bouncing up from oversold levels, signaling scope for a corrective rally.
As a result, the pair may challenge the descending (bearish) 10-day moving average (MA) of 141.10 in the next couple of hours.
Trend: Corrective bounce