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Home » Technical Analysis » Daily » GBPJPY – Sell Near Gap Close Area?

GBPJPY – Sell Near Gap Close Area?

Posted by FXTimes in Daily - April 18th, 2016 10:05 am GMT

pound 14

Key Points

  • British Pound tumbled against the Japanese Yen, as the latter one gained traction due to a drop in oil prices.
  • The GBPJPY pair broke a bullish trend line formed on the hourly chart, which may now act as a resistance for the pair.
  • In the UK today, the Rightmove House Price Index was released, which posted an increase of 1.3% in April 2016, compared with the previous month.
  • In terms of the yearly change, there was a rise of 7.6% in the UK HPI.

Technical Analysis

The British Pound was crushed against the Japanese Yen recently, as the latter one traded higher against most major currencies. There was a change in the risk sentiment after oil prices opened with a major gap down.

GBPJPY

The GBPJPY pair also opened with a gap lower, and currently attempting to close the gap area. However, the gap close area is positioned near the 200 and 50 hourly simple moving average, which can as a sell zone.

So, one may consider selling near the 200 SMA with a stop above the 100 SMA.

Uk House Price Index

Earlier today during the Asian session, the UK Rightmove House Price Index, which provides a sample of residential property prices in the UK was published. The result was positive, as the UK HPI grew 1.3% in April 2016, compared with the previous month.

In terms of the yearly change, the UK Rightmove House Price Index increased 7.6% in April 2016. The report added that “Average price of property coming to market up by 1.3% (+£3,843) to set a record high of £307,033, and this month’s rise is driven by second-stepper and top of the ladder sectors, while smaller properties in first-time buyer/buy-to-let sector see monthly price drop of 1.4%”.

The GBPJPY looks bearish and as long as the pair is below the 100 SMA, there is a chance of more losses.

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