GBP/JPY Slips as UK’s Inflation Disappoints – Trade Idea!
Arslan Butt • 1 min read
As per the Office for National Statistics Inflation Report:
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.2% in October 2018, unchanged from September 2018.
- The Consumer Prices Index (CPI) 12-month rate was 2.4% in October 2018, unchanged from September 2018.
- The figure missed the economist forecast of 2.5%, which is likely to weaken the British Pound.
Looking at the technical side, the GBP/JPY has violated a strong resistance level of 147.450 and currently it’s trading right above this level. Although the fundamentals are suggesting a bearish trend, it’s hard to expect bearishness until the GBP/JPY breaks below 147.450.
On the 4 hour chart, the pair is testing 50-period moving average at 147.650 and a bearish crossover is likely to add to a selling bias today.
Key Trading Level: 147.61
GBP/JPY – Trade Plan
The idea is to enter a sell position below 147.550 with a stop loss above 147.750 to target 147 and 146.750.