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Market Analysis

Home » Featured » GBPJPY: More Downsides To Follow?

GBPJPY: More Downsides To Follow?

Posted by FXTimes in Featured - February 22nd, 2016 1:19 pm GMT

pound 14

Key Points

  • British Pound hammering continued this week, as it traded down against the US Dollar and the Japanese Yen.
  • GBPJPY was down and looks set for a move towards the 159.00 area.
  • In the UK, the CBI Industrial Trends Survey is released by the Confederation of British Industry posted a decline from -15 to -17 in Feb 2016.
  • GBPJPY is under a lot of bearish pressure, which may result in more losses.

Technical Analysis

The GBPJPY pair is following a nice downward sloping path, as sellers were in control in taking the British Pound down. There are a couple of bearish trend lines formed, which may act as a barrier and selling zone in the near term.

GBPJPY

If the pair corrects higher, then the 23.6% Fib retracement level of the last drop from the 163.96 high to 159.65 low may act as a resistance along with the bearish trend line.

On the downside, the next support area can be around the 159.00 area.

UK CBI Industrial Trends Survey

Today in the UK, the CBI Industrial Trends Survey, which gives expert qualitative opinion from senior manufacturing executives was released by the Confederation of British Industry. The forecast was lined up for an increase from -15 to -11 in Feb 2016. However, the outcome was disappointing, as there was decline to -17.

The report stated that “Output volumes were flat over the past three months, a very marginal improvement on the previous quarter. Expectations for production over the coming quarter are again positive, albeit only somewhat above average and a little weaker than last month’s expectations “.

Overall, the British Pound may not be able to get bids in the near term as the exit fears from the Euro Zone is looming.

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