- British Pound is trying hard to recover ground against the Japanese Yen, but facing sellers.
- The GBPJPY pair has a bearish trend line on the hourly chart, which is acting as a resistance.
- UK Industrial Production released by the National Statistics posted a decline of 0.7% in November 2015, compared with the forecast of 0%.
- UK manufacturing Production also posted a decline and came in at -0.4% in November 2015, compared with the forecast of +0.1%.
The GBPJPY pair recently broke a short-term support trend line on the hourly chart to open the doors for more losses. Moreover, there is a bearish trend line on the hourly chart, which is acting as a resistance.
The 50 hourly simple moving average is currently acting as a hurdle for buyers and preventing an upside move.
In short, the GBPJPY pair looks like in a perfect bearish trend line and may continue to trade lower.
UK Industrial Production
Today, there were a couple of important releases lined up in the UK. First, the Industrial Production, which measures outputs of the UK factories and mines was published by the National Statistics. The market was expecting a reading of 0% in Nov 2015, compared with the preceding month. However the outcome was disappointing, as the Industrial Production declined by 0.75 % in Nov 2015.
Moreover, the UK manufacturing Production was also reported, which was again on the lower side. The report stated that the UK manufacturing Production declined 0.4% in November 2015, compared with the forecast of a 0.1% rise.
Overall, the reports were negative, and weighed on the GBPUSD pair. It traded lower and moved below the 1.4500 level. Similarly, the GBPJPY pair move down.