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Sep 25, 2016

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Market Analysis

Home » Featured » GBPJPY Eyeing More Gains?

GBPJPY Eyeing More Gains?

Posted by FXTimes in Featured - March 11th, 2016 12:04 pm GMT

pound-sterling-money-coins-notes

Key Points

  • British Pound managed to gain traction during the past couple of sessions not only against the US dollar, but also against the Japanese Yen.
  • GBPJPY is following a nice bullish trend line on the hourly chart, which may act as a support moving ahead.
  • The UK Goods trade balance report was released by the National Statistics today, which registered a trade deficit of £-10.290B, lower than the forecast of £-10.300B.
  • The total trade balance was disappointing, and registered a trade deficit of £-3.459B, higher compared with the forecast of £-3.000B.

Technical Analysis

The British Pound traded higher and posted solid gains against the Japanese yen. There is a bullish trend line on the hourly chart of the GBPJPY pair, which is acting as a support and pushing the pair higher.

GBPJPY

The pair is currently trading near the last high of 162.88, and looking for a move towards the 163.00 level in the near term.

On the downside, one may consider buying as long as the pair is above the 100 hourly simple moving average.

UK Trade Balance

Today, the UK trade balance that evaluates and calculates a balance between exports and imports of goods was published by the National Statistics. The market was expecting the total trade balance to register a trade deficit of £-3.000B. However, the result was disappointing, as the deficit came in at £-3.459B.

The report stated that the “narrowing of the trade in goods deficit between December 2015 and January 2016 reflected a decrease in imports of £0.2 billion to £33.2 billion attributed to falls in unspecified goods and fuels. However, excluding oil and erratics the trade in goods deficit widened by £0.5 billion between December 2015 and January 2016”.

Overall, the British pound looks set for more gains as long as it remains above the highlighted trend line and support area.

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