Back

GBP/JPY falls below 181.00

The British Pound weakened after the data showed UK industrial production contracted in December; pushing the GBP/JPY pair below 181.00 levels.

Losses capped by an upbeat manufacturing data

The Pound weakened as the UK industrial production contracted 0.2% month-on-month in December. Year-on-year the activity expanded at a slower-than-expected rate of 0.5%. The weak data pushed the GBP/JPY pair down to 180.56 levels from the pre-data level of 181.00. The pair now trades below the 5-DMA located at 180.70 levels.

However, losses have been capped to some extent due to a better-than-expected manufacturing output, which rose 2.4% year-on-year and 0.1% month-on-month. The data for the previous month was also revised higher.

GBP/JPY Technical Levels

The pair now trades at 180.61 levels. The immediate support is seen at 180.14, under which losses could be extended to 179.56 levels. Meanwhile, resistance is seen at 181.09 and 181.60 levels.

GBP/USD to consolidate above 1.50 levels in coming weeks – Rabobank

Jane Foley, Senior Currency Strategist at Rabobank, comments on the inflation and growth outlook for UK, and further forecasts GBP/USD to consolidate above 1.50 levels in the coming weeks and EUR/GBP to end the year lower at 0.73 levels.
Read more Previous

EUR/JPY struggles above 134

EUR/JPY erased previous gains from and edged lower in the European session largely on Euro weakness as Greece woes continue to hamper investors’ sentiments.
Read more Next