GBP/JPY Cross Recovers Slightly After Steep Decline

The GBP/JPY cross has staged a limited recovery as the Japanese Yen pauses its recent advance. This comes after the cross broke several key supports and slid around 4% from above 216, reaching its lowest level since December 2022.

Oversold conditions shown by the daily Relative Strength Index (RSI) suggest scope for a short-term rebound in the cross. The RSI near 27 indicates that the cross is oversold, leaving room for a corrective rebound or a period of consolidation.

The Moving Average Convergence Divergence indicator remains below zero, suggesting that downside momentum is still in place. On the topside, initial resistance is seen at the 23.6% Fibonacci retracement of the decline from 216.63 to 207.10 at 209.35.