Key Points
- The British Pound made a downside move below 143.00 against the Japanese Yen, and later found support at 141.95.
- The GBPJPY pair is currently attempting a break above a bearish trend line at 142.42 on the hourly chart.
- Today in the UK, the PMI service for May 2017 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics.
- The outcome was below the forecast, as the PMI service declined to 53.8 from 55.8.
GBPJPY Technical Analysis
The British Pound after trading as high as 143.95 against the Japanese Yen faced resistance, and started a downside move. The GBPJPY pair traded lower and moved below the 143.50 and 143.00 support levels to trade as low as 141.95.
The pair also broke the 21 hourly simple moving average and 142.60 support during the downside. At the moment, the pair is consolidating in a range and facing resistance near the 23.6% Fib retracement level of the last decline from the 143.95 high to 141.95 low.
The pair is also facing a bearish trend line at 142.42 on the hourly chart. Once there is a break and close above 142.50, the pair could test the 50% Fib retracement level of the last decline from the 143.95 high to 141.95 low at 142.95.
UK Services PMI
Recently in the UK, the PMI service for May 2017 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The market was positioned for a minor decline in the PMI from 55.8 to 55.0 in May 2017.
The result was below the forecast, as the PMI service declined to 53.8 from 55.8. The report stated that “May data highlighted a renewed slowdown in business activity growth across the UK service economy, following the four-month peak achieved in April“.
Overall, if there is a break above 142.45-50 in GBPJPY, the pair may extend gains towards the 143.00 handle.
