The Great Britain Pound (GBP) inched lower against the Japanese Yen (JPY) on Wednesday, dragging the price of GBPJPY to less than 140.80, following the release of some key economic news. The technical bias shall remain bullish because of higher high in the recent upside rally.
As of this writing the pair is being traded around 140.79. A support can be noted near 138.86, the horizontal support area as demonstrated in the given below daily chart. A break and daily closing below the 138.86 support area shall incite renewed selling interest, validating a downside move towards the 132.30 support area.
On the upside the pair is expected to face a hurdle near 143.84, the intraday high of Monday ahead of 148.50, the confluence of psychological number as well as horizontal resistance area. The technical bias shall remain bullish as long as the 122.73 support area is intact.
UK Manufacturing Production
The UK industrial sector returned to health in November after manufacturing output rose more than expected and the North Sea’s biggest oilfield resumed production following a temporary closure. The Office for National Statistics (ONS) monthly estimate of manufacturing increased by 1.3% in November, with industrial production pushing ahead by 2.1%. The largest contribution came from pharmaceutical companies, which increased output by 11.4%. The growth in industrial production was also driven by an 8.2% month-on-month increase in mining and quarrying output. Analysts polled by Reuters had expected a 0.5% manufacturing gain and industrial output to increase by 0.8%.
Considering the overall technical and fundamental outlook, selling the pair below the 138.86 support area appears to be a good strategy in short to medium term.