Today’s Great Britain Pound (GBP) plunged down against the Japanese Yen (JPY), with a price of less than 144.00. Despite today’s decline, the price continuously fluctuates its movements on the same level from more than a week, this has resulted from the adverse news from the UK. The technical bias on the graph remains bullish because of the lower high movement, as shown in the last downside move.
The publication of news stories on January 13, 2020, played a part in lowering the price of GBPUSD including the manufacturing and domestic sectors.
Manufacturing production has fallen from 0.5% to -1.7%. Manufacturing Production is seen as a short-term measure of UK industrial activity’s intensity, which comprises much of total GDP. Consequently, low reading is considered negative (or bearish) for the UK.
The Gross Domestic Product was also on the UK’s list of adverse situations with a reading of -0.3 percent. GDP is seen as a broad measure of the UK’s economic activity. A bearish divergence is generally perceived as negative (or dovish).
As of writing this piece, the GBPJPY is being sold at the price of 143.01, the graph below shows that the price is supported by the number of support levels the immediate support level that the trendline support of 143.54 is just below the price and soon after that there is another trendline of 140.45, and then the support of the main horizontal falls at 137.08.
On the opposite side, there are levels of resistance that do not allow the price to rise above this levels or that can push back the price from its current level, at first there is a big horizontal resistance of 143.62, then there is the Fibonacci level of 144.61, and then at 145.85, there is the resistance of the trendline as shown in the above graph.
Given the latest activity of GBPJPY, it would be expected that the price of the pair would go forward and that market backup chances are lower, so there are prospects for both short and medium-sized traders to make a profit.