GBP/JPY Slips as UK’s Inflation Disappoints – Trade Idea!
Arslan Butt•Wednesday, November 14, 2018•1 min read
As per the Office for National Statistics Inflation Report:
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.2% in October 2018, unchanged from September 2018.
- The Consumer Prices Index (CPI) 12-month rate was 2.4% in October 2018, unchanged from September 2018.
- The figure missed the economist forecast of 2.5%, which is likely to weaken the British Pound.
Looking at the technical side, the GBP/JPY has violated a strong resistance level of 147.450 and currently it’s trading right above this level. Although the fundamentals are suggesting a bearish trend, it’s hard to expect bearishness until the GBP/JPY breaks below 147.450.
On the 4 hour chart, the pair is testing 50-period moving average at 147.650 and a bearish crossover is likely to add to a selling bias today.
Support Resistance
147.49 147.8
147.3 147.92
146.98 148.23
Key Trading Level: 147.61
GBP/JPY – Trade Plan
The idea is to enter a sell position below 147.550 with a stop loss above 147.750 to target 147 and 146.750.
Good luck!
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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