GBP/JPY turns positive after UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone around GBP gathered pace, pushing the GBP/JPY into the positive territory even though the data showed the UK factory activity contracted more than expected in December.

    Trades above hourly 50-MA

    The cross now trades above the hourly 50-MA located at 166.39. A weaker industrial and manufacturing data release in the UK did result in a quick fire drop to near 166.00 levels, but the same was quickly undone as the slowdown was already priced-in after the release of a weak PMI index for December.

    Consequently, the bid tone around GBP remained intact. The pair now trades around 166.70 levels.

    GBP/JPY Technical Levels

    The immediate resistance is seen at 167.14 (resistance on hourly chart), above which the spot could target 168.22 (hourly 100-MA). On the other hand, a break below confluence of support around 166.38 (hourly 50-MA) would open doors for a drop to 164.55 (previous day’s low).
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