GBP/JPY’s downtrend is likely followed by hanging-man formation

On daily chart 'Hanging-man candlestick' pattern on GBP/JPY's uptrend rally indicates weakness in this pair to sustain this trend.

In addition to this bearish candle pattern, oscillating indicators suggest overbought pressure on this pair.

14 day RSI gives a hint of downward price convergence with the bearish strength.

RSI (14) currently trending around 60.4558.

While Slow stochastic also signals overbought scene as a clear %D line crossover seen exactly above 80 levels.

%D line = 86.6221 & %K line = 73.4598

On weekly chart also early signs of overbought pressure are spotted out through momentum indicators.

Currency Derivatives Trade Ideas:

As a result of above technical observation we look ahead for more price depreciation in this pair.

Intraday traders can get benefitted from probable price falls in coming days by leveraging advantage through fresh short build ups on near month GBPJPY futures contracts.

On an intraday basis, we would also like to recommend slightly above At-The-Money binary puts of GBP/JPY are suggested for long positions.