- British Pound after collapsing against the Japanese yen found support near 154.70-80.
- The GBPJPY pair traded higher and moved above a couple of important bearish trend lines on the hourly chart.
- UK Gross Domestic Product released by the National Statistics posted an increase of 0.5% in Q4 2015 as forecasted.
- UK Index of Services rose 0.7% in Dec 2015, which was more than the forecast of 0.6%.
The British Pound decline is no surprise to anyone but it looks like there is a chance of a minor recovery especially against the Japanese Yen. There were a couple of important bearish trend lines on the hourly chart, which were broken by the bulls to open the doors for more upsides in the near term.
It looks like the GBPJPY pair is heading towards the 1.236 extension of the last move from the 157.31 high to 154.71 low. Moreover, the pair also settled above the 50 hourly simple moving average.
On the upside, the 100 hourly simple moving average may also come into play as a resistance.
Today in the UK, there was a major economic release lined up. The Gross Domestic Product, which is a measure of the total value of all goods and services produced by the UK was released by the National Statistics. The market was expecting an increase of 0.5% in Q4 2015, and the outcome was as expected.
The report stated that “Between 2014 and 2015, GDP in volume terms increased by 2.2%, unrevised from the previous estimate. Between Quarter 4 2014 and Quarter 4 2015, GDP in volume terms increased by 1.9%, unrevised from the previously published estimate.”
Overall, there is chance that the GBPJPY pair may continue to move higher and trade near the 100 hourly SMA.