The British Pound (GBP) today took the retrograde move toward the Japanese yen (JPY) with a price of less than 132.00. This decline is quite unhopeful since the GBPJPY had been suffering from a poor period since the beginning of the month. And now the growth cycle started from the end of the last week and this fall made hurdles in its growth phase which is not good for the GBPJPY.
The news that is responsible for the depreciated GBPJPY may be the negative retail sales, the Retail sales were predicted to be 0.8 percent below last month’s 0.9 percent index, but this month it is set at 0 percent. A retail goods survey is focused on sampling retail stores of different types and sizes and is considered a measure of the pace of the economy of the country.
It shows the retail sector’s performance over the short and mid-term. Positive economic growth predicts bullish trends for the GBP, while negative or bearish reading is viewed as low.
It has been found that on the upper side of the price is the stress of the number of resistance levels that will bring a further challenge in the already encumbered GBPJPY path, and it could drive pair’s backward.
The limited levels of support on the opposite side of GBPJPY stood to raise the price upward. The first strong support is the confluence of the Fibonacci-level and the trendline at 129.56 which is below the price, and then the main horizontal support at 123.88 strengthens the price of this pair.
Even though the GBPJPY has plummeted down but is still available to contend with the investment problems, the attempt to avoid it would not be a sensible decision.