- British Pound faced a lot of selling pressure lately, not only against the US Dollar but also against the Japanese yen.
- There is a bearish trend line formed on the hourly chart of the GBPJPY pair, which may be seen as a sell area in the short term.
- Today, the UK Services PMI was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics.
- It posted a minor rise from 52.7 to 53.7 in March 2016, but missed the forecast of 54.0.
The British Pound was down and out against the US dollar and the Japanese yen. The GBPJPY pair tumbled recently, and there is a bearish trend line formed on the hourly chart, which may continue to act as a resistance for the pair in the short term.
An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the 159.58 high to 156.62 low. However, the most important barrier is near the bearish trend line.
On the downside, the last swing low of 156.62 may act as a support, followed by the 156.40 area.
UK Services PMI
Earlier today, the UK Services PMI, which is an indicator of the economic situation in services sector was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The market was expecting a rise from 52.7 to 54.0 in March 2016. However, the outcome was a bit lower, as the UK Services PMI came in at 53.7.
The report added on the release that the “UK service sector growth remained sluggish in March, according to the latest PMI® survey data from Markit and CIPS. Total activity increased at a slightly faster rate than in February, but on a quarterly basis growth over the first three months of 2016 was the weakest since Q1 2013”.
Overall, the British Pound buyers were not impressed, and that’s why the GBPJPY pair may continue to weaken moving ahead.