Visit our website – Ikofx

The British pound managed to spike above the 180.00 level against the Japanese yen, but failed to hold the gains. As a result the GBPJPY pair is currently moving lower. There was a strong rejection noted around the 181.00-180.00 area. Today, during the London session, the UK Net Borrowing, which points an amount of new debt held by the U.K. governments (the financial deficit in the UK national accounts) will be released by the National Statistics. The market is expecting it to stay at £7.700B in February 2015, compared to the preceding month. Let us see how the outcome shapes and affects the GBPJPY pair.

There is a critical bearish trend line formed on the hourly chart of the GBPJPY pair, which acted as a barrier recently for the pair. Moreover, the 200 hourly moving average is also sitting above the highlighted trend line. Currently the pair is trading around the 76.4% fib retracement level of the last leg from the 177.13 low to 181.02 high. Let us see whether it can move higher from the current levels or not. On the upside initial reaction level can be seen around the 100 hour MA, which is at 179.00-10 area. Any further upside might take the pair towards the highlighted trend line where sellers are likely to appear. The hourly RSI is below the 50 level, which is a negative sign in the short term.

If the GBPJPY pair moves lower from the current levels, then initial support is around the last low of 177.10.

Overall, one might consider selling rallies in the GBPJPY pair as long as it stays below the 100 hour MA.

————————————-
Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com