Key Points
- The British Pound after trading as low as 148.68 against the Japanese Yen, found support and started a recovery.
- There is a major contracting triangle forming with support at 149.80 on the hourly chart of GBPJPY.
- Recently in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales for Oct 2017 was released.
- The outcome was below the forecast of +1% as there was a decline in sales by 1% (YoY).
GBPJPY Technical Analysis
The British Pound traded sharply lower this past week and broke the 149.00 support against the Japanese Yen. The USDCAD pair traded as low as 148.68 before buyers appeared, and the pair started an upside correction.
The pair has moved above the 38.2% Fibonacci retracement level of the last decline from the 151.48 high to 148.68 low, and settled above the 21 hourly simple moving average.
It is following a major contracting triangle with support at 149.80 on the hourly chart, but it is facing a major hurdle near the 50% Fibonacci retracement level of the last decline from the 151.48 high to 148.68 low at 150.08.
British Retail Consortium (BRC) Like-For-Like Retail Sales
Recently in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales for Oct 2017 was released. The market was positioned for a rise of 1% in sales compared with the same month a year ago.
The actual result was below the forecast of +1% as there was a decline in sales by 1%. It was also disappointing compared with the last increase of 1.9%. Commenting on the same, Helen Dickinson OBE, Chief Executive, BRC, stated:
It was a meagre month in October for retail sales as shopping activity slumped. With total growth at its lowest since May and below the 12-month average, retailers will have cause for concern as they prepare for the crucial run up to Christmas.
Overall, the GBPJPY pair might continue to move higher, but it faces many hurdles on the upside near 150.00 and 150.10.
