GBP/JPY Sideways Range – Potential Breakout Opportunity
Arslan Butt • 1 min read
Just like other financial securities, the movement in GBP/JPY is flat despite the release of CBI Industrial Order Expectations which disappointed the market with -34 vs. -15 previous.
As per the survey report, manufacturing activity sank in the quarter to July, but firms anticipate an insignificant improvement in the next few months. The survey of 291 manufacturing firms recorded that confidence dropped at the fastest pace since July 2016 – just after the referendum – and investment spending plans weakened again.
New orders dipped distinctly in the quarter to July: both fresh domestic and further export orders dropped at their fastest respective speeds since the financial crisis. Despite this, GBP/JPY failed to show any price action.
Key Trading Level: 134.76
Well, it’s fine as we can use the existing setup later. Let’s take a look at the 4-hour timeframe – GBP/JPY is trading sideways within a narrow trading range of 134.450 to 135.036.
Investors have expected a breakout of the range on the news release but it couldn’t help. Anyhow, GBP/JPY may fall to 133.900 on the bearish breakout of 134.400.
On the other hand, the breakout of 135.036 can extend bullish rally until 135.600.