- The British Pound started a downward move after trading as high as 133.30 versus the Japanese yen.
- The GBPJPY pair is following a bearish line formed on the hourly chart, which is pushing the pair down.
- Today in the UK, the CBI Distributive Trades Survey was released by the Confederation of British Industry.
- The result was negative, as the CBI Distributive Trades index came in at -8 in Sep 2016, compared with the last reading of 9.
GBPJPY Technical Analysis
The British Pound started a downtrend after testing the 133.30 resistance. There was a solid downside reaction, which pushed the GBPJPY pair below the 21 hourly simple moving average.
Currently, the pair is facing sellers near a bearish line formed on the hourly chart, which is acting as a sell area.
If the pair attempts to correct higher from the current levels, there one may consider selling near the trend line with a stop above the 21 hourly SMA.
UK CBI Distributive Trades Index
Today in the UK, the CBI Distributive Trades Survey, which is an indicator of short-term trends in the UK retail and wholesale distribution sector was released by the Confederation of British Industry.
The market was not expecting any major decline in the index. However, the result was negative, as the CBI Distributive Trades index came in at -8 in Sep 2016, compared with the last reading of 9. In a recent press release, the CBI reported that “Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union, according to the latest CBI/PwC Financial Services Survey”.
Overall, the British Pound has hardly anything for the bulls, which puts it at a risk of more losses.