Key Points
- The British Pound after trading towards 146.60 found sellers and moved down against the Japanese Yen.
- There was a break below a crucial bullish trend line at 145.85 on the hourly chart of GBPJPY.
- Today in the UK, the Consumer Credit figure for June 2017 was released by the Bank of England.
- The outcome was below the forecast, as Consumer Credit was £1.458B, less than the forecast of £1.500B.
GBPJPY Technical Analysis
The British Pound traded with a good momentum towards the 146.60 level against the Japanese Yen until it faced sellers. The GBPJPY pair traded as high as 146.56 from where it moved down and traded below the 146.00 handle and the 21 hourly simple moving average.
The pair even broke the 38.2% Fib retracement level of the last wave from the 144.10 low to 146.56 high. It is currently trading near the 145.00 support and on the upside facing a bearish trend line and the 23. % Fib retracement level of the last decline from the 146.56 high to 144.89 low as resistance.
A break and close below the 145.00 handle could ignite more declines below 144.85 in the near term.
UK’s Consumer Credit
Today in in the UK, the Consumer Credit figure for June 2017 was released by the Bank of England. The market was positioned for a reading of £1.500B compared with the last £1.732B.
The actual result was below the forecast, as Consumer Credit was £1.458B, less than the forecast of £1.500B. The last reading was revised up from £1.732B to £1.769B. The report added that:
Broad money increased by £9.0 billion in June. Within this, households’ money increased by £5.8 billion following a particularly weak flow in May. Private non-financial corporations’ (PNFCs’) money increased by £4.7 billion, well above its recent average.
Overall, the GBPJPY pair may continue to decline further with a break of the 145.00 handle in the near term.
