GBP/JPY Recovers As U.K. Retail Sales Surprises The Market
Arslan Butt • 1 min read
On Wednesday, the British Pound encountered massive selling on the release of worse than expected Inflation data. The U.K’s inflation fell from 2.7% to 2.4% just in two months. Which honestly is a moment of concern for the British economy. Nevertheless, the recent strength in sterling is extended by positive fundamentals.
I’m referring to the U.K’s retail sales figure which upbeat the analysts’ forecast of 0.8% rise. The quantity bought in April rose by 1.6% as all sectors, excluding department stores, retrieved from the declines seen in March.
Now we have the Bank of England’s Governor Mark Carney on board who is due to speak at the Society of Professional Economists’ annual dinner, in London today at 17:00 (GMT).
GBP/JPY – 2 Hour Chart
Technically, the oversold Guppy is coming out of the oversold zone and has already completed 23.2% Fibonacci retracement near 146.850. It’s facing some solid hurdle up there at 147.050. Successful violation of this level is likely to lead it towards 38.2% Fibo level of 147.400 and 50% level of 147.850. We don’t need to worry about 50- periods EMA which is holding far away at 147.950. The test bars near 146 are making this level a strong support.
GBP/JPY – Trading Plan
So, my friends, 147.250 is a very crucial trading level today. Below this, the GBP/JPY can stay bearish until 146.250. While the bullish breakout can give us a buying opportunity until 147.800. Good luck!