| Indicator | 4H | 1D | 1W |
| MACD (12; 26; 9) | Sell | Sell | Sell |
| RSI (14) | Neutral | Neutral | Neutral |
| Stochastic (5; 3) | Neutral | Buy | Neutral |
| Alligator (13; 8; 5) | Sell | Sell | Sell |
| SAR (0.02; 0.2) | Buy | Sell | Sell |
| Aggregate | ⇘ | ⇒ | ⇒ |
Following a month of appreciation, the Sterling reversed from 149.25— its three-month high against the Japanese Yen—and began falling. Subsequently, the pair lost around 2.30% within a couple of sessions prior to normalising this plunge and trading relatively sideways for a week.
By Monday morning, the rate was testing the combined resistance of the 55– and 100-hour SMAs near 146.00. This sudden change in sentiment could be an early indication of a bullish reversal.
In order to confirm this scenario, the pair needs to overcome the 200-hour SMA and the short-term channel near 146.50. Next upside target is a trend-line, the 100-day SMA and the 38.20% Fibonacci retracement at 148.50.
In case the 200-hour SMA remains intact, bears are likely to take the upper hand in the market and push the Sterling towards the 61.80% Fibo at 143.60.