Key Points
- The British Pound traded higher towards 140.40 against the Japanese yen, but failed and moved down.
- There is a crucial bearish trend line with resistance at 140.00 on the hourly chart of GBPJPY, acting as a hurdle for the pair.
- Today in the UK, the GfK Group Consumer Confidence for Feb 2017 was released.
- The result was in line with the forecast, as the Consumer Confidence came in at -6.
GBPJPY Technical Analysis
The British Pound gained pace after trading as low as 139.01 against the Japanese yen, and traded above 140.00. However, the GBPJPY pair failed near 140.40 and a crucial bearish trend line on the hourly chart, resulting in a downside move.
The same trend line resistance also coincides with the 21 hourly simple moving average at 139.95. So, it won’t be easy for the pair to break 139.90 and 140.00 to sustain momentum.
If the pair fails to trade above the trend line resistance, there is a chance of a downside move back towards 139.30.
GfK Group Consumer Confidence
Today in the UK, the GfK Group Consumer Confidence for Feb 2017 was released. It is a leading index that measures the level of consumer confidence in economic activity and was forecasted to decline from -5 to -6 in Feb 2017.
The outcome was in line with the forecast, as the Consumer Confidence came in at -6. Commenting on the report, the Head of Market Dynamics at GfK, Joe Staton, stated “ Against a backdrop of rising food and fuel prices, sterling depreciation, nominal earnings growth and a burgeoning fear of rapid inflation, concern about our personal financial situation for 2017 has contributed to a drop in UK consumer confidence this month (to -6)”.
Overall, the outcome was neutral, which is why the trend line resistance holds the key at 140.00 in the short term for GBPJPY.
