- – The British Pound is under bearish pressure and recently broke the 150.40 support against the Japanese Yen.
- – There is a crucial bearish trend line forming with resistance at 150.30 on the hourly chart of GBP/JPY.
- – Today in the UK, the PMI Construction for Sep 2017 was released by the Chartered Institute of Purchasing & Supply and Markit Economics.
- – The outcome was below the forecast of 50.8 as there was a decline from 51.1 to 48.1.
UK’s Construction PMI
Today in the UK, the PMI Construction for Sep 2017 was released by the Chartered Institute of Purchasing & Supply and Markit Economics. The market was positioned for a minor decline from the last reading of 51.1 to 50.8.
However, the actual result was below the forecast of 50.8, as there was a decline from 51.1 to 48.1. The PMI registered a contraction in Sep 2017 the business activity fell for the first time in 13 months. The report added that:
September data revealed a difficult month for the UK construction sector, as a sustained drop in new work led to the first reduction in overall business activity since August 2016. Survey respondents attributed the drop in workloads to fragile confidence and subdued risk appetite among clients, especially in the commercial building sector.
Overall, the GBP/JPY pair may continue to decline and it could even break the recent low of 149.27 in the near term.
GBP/JPY Technical Analysis
The British Pound faced a lot of selling pressure recently and started a downside move from the 151.60 swing high against the Japanese Yen. The GBP/JPY pair declined and broke a few important support levels like 151.20, 151.00 and 150.40.
The pair even traded below the 150.00 handle and the 100 hourly simple moving average. A low was formed at 149.27 from where a recovery was initiated. The pair moved above the 38.2% Fib retracement level of the last decline from the 150.95 high to 129.27 low.
However, there is a crucial bearish trend line forming with resistance at 150.30 on the hourly chart. The pair is currently struggling to break the 50% Fib retracement level of the last decline from the 150.95 high to 129.27 low.
Therefore, there are high chances that the GBP/JPY pair would break the trend line support at 149.80 support and decline back towards the 149.30 zone.Tags: British Pound, GBP/JPY, GBP/JPY Technical Analysis, Japanese Yen