• Mixed UK retail sales data prompts some GBP weakness.
• Reviving safe-haven demand adds to the downward pressure.
• Focus remains on the latest BoE monetary policy update.
The GBP/JPY cross snapped three consecutive days of winning streak and eroded a major part of previous session's up-move to one-month tops.
Despite better-than-expected headline UK retail sales data, showing m-o-m growth of 0.8%, the core figures pointed to a further slowdown in spending and prompted some GBP weakness on Thursday.
This coupled with the prevalent risk-off mood underpinned the Japanese Yen's safe-haven demand and collaborated to the pair's weaker tone through the mid-European session.
The downside, however, remained cushioned as investors seemed reluctant to place any aggressive bets and preferred to wait on the sideline ahead of the latest BoE monetary policy update.
With a Brexit transition deal already in place, the accompanying rate statement could point to a hawkish tilt and trigger a fresh leg of bullish momentum around the British Pound. Hence, any further downside seems to be limited and any dip is more likely to be quickly bought into.
Technical levels to watch
Immediate support is pegged near the 149.00-148.80 region, below which the fall could get extended towards retesting the very important 200-day SMA support near the 148.00 handle.
On the upside, the key 150.00 psychological mark seems to act as an immediate resistance, which if cleared decisively now seems to assist the cross to aim towards reclaiming the 151.00 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Strong resistance lies at 0.6300
The marked sell-off in the US Dollar allowed AUD/USD to regain strong upside traction and reach multi-day highs in the area just below the key 0.6300 barrier at the beginning of the week.
EUR/USD: Bulls need to clear 1.0400 on a convincing fashion
In line with the rest of the risk-associated complex, EUR/USD managed to regain marked buying pressure and flirted with the area of three-week highs around 1.0430 on Monday.
Gold remains focused on all-time highs
Gold stays in positive territory above $2,700 on Monday as the improving risk mood makes it difficult for the US Dollar to find demand. Markets await US President Donald Trump's speech at the inauguration ceremony.
Solana Price Forecast: Are US traders dumping Bitcoin and XRP for SOL?
Solana (SOL) price stabilized near the $250 support level on Monday, having declined 10% from its all-time high over the last 24 hours.
GBP/USD stays defensive below 1.2200, awaits Trump 2.0
GBP/USD struggles to gain traction and trades slightly below 1.2200 in the second half of the day on Monday. Markets' nervousness ahead of US President-elect Donald Trump's inauguration drag the pair lower despite a broadly weaker US Dollar.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.