GBP/JPY Price Analysis: Dribbles above 162.00 inside bearish channel after UK Retail Sales
- GBP/JPY pares intraday gains after mixed UK Retail Sales for July.
- RSI (14) also justifies a pullback towards 100-HMA but bullish MACD signals challenge further downside view.
- Bulls need to defy the three-day-old descending trend channel to retake control.
GBP/JPY consolidates daily gains around 162.30 after the UK’s Retail Sales probed Sterling Pound buyers during the early Friday morning in Europe. In doing so, the cross-currency pair remains inside an immediate bearish trend channel.
That said, UK’s Retail Sales for July dropped to -3.4% YoY versus -3.3% expected and downwardly revised -6.1% prior. However, the details appeared to be promising but failed to favor the GBP/JPY rebound.
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It’s worth noting, however, that the 100-HMA joins the bullish MACD signals to defend GBP/JPY buyers around the 162.00 threshold inside a bearish chart pattern.
Following that, the stated channel’s support line near 161.50 could gain the market’s attention.
In a case where GBP/JPY defies the channel formation by declining below 161.50, a downward trajectory towards the monthly low near 159.45 can’t be ruled out.
Alternatively, recovery moves become interesting on crossing the channel’s upper line, at 163.00 by the press time, while targeting the monthly peak near 164.00.
GBP/JPY: Hourly chart
Trend: Limited downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
