GBP/JPY - Daily RSI still diverging, but watch out for a break

١٧ يونيو ٢٠١٦

• Daily chart clearly shows lower lows on price and higher highs on RSI.
  

• Despite the drop in the prices to fresh multi-year low of 145.389, the RSI has stayed well above the its previous lows (marked by circles).
  

• The divergence indicates we could see a correction ahead. However, EU referendum is due next Thursday and fresh GBP selling cannot be ruled out.
  

• Bears should watch out for daily RSI breaking the rising bottom formation as that could be a hint of further sell-off in the pair.