The U.K. inflation accelerated for the first time in eight months in July, increased by the cost of auto fuel, transport tickets and computer games. As per Office for National Statistics, the consumer-price growth jumped to 2.5% from 2.4% in June, as per economists’ forecast.

GBP/JPY – 4 Hour Chart

Overall, it’s a positive data for the Sterling and we also had a sharp spike in GBP. Let’s look at the GBP/JPY. Technically speaking, the GBP/JPY has already completed 61.8% retracement at 142.250. The same level is working as a solid hurdle for the pair. Taking a look at the 4- hour chart, you can see Japanese cross is trading sideways exactly below the 61.8% retracement level.

I will still be looking to stay bearish below 142.450 to target 141. Good luck!