- The Sterling is seeing little reason to move higher across the board as investor confidence remains on the low end.
- Broader market sentiment continues to flag behind the curve, and the Guppy’s failure to hold 144.00 could see the pair shrink further.
The GBP/JPY is trading into the 143.60 zone, sticking close to the low end of Tuesday’s flat range as the Pound struggles to find bulls momentum in broader markets, and risk aversion remains close to the surface.
The Guppy has failed to reclaim the 144.00 technical barrier twice this week, and buyers are beginning to run out of steam as the GBP/JPY remains trapped under a declining trendline.
The UK’s early Wednesday reading of the Gfk Consumer Confidence for October came in at expectations, declining to -10 after September’s bearish showing of -9, and Japan’s low-tier m/m Industrial Production reading for September missed forecasts, clocking in at -1.1% (forecast -0.3%, previous 0.2%), and risk appetite remains tepid heading into Wednesday’s trading session.
GBP/JPY levels to watch
The Guppy currently sees constraining pressure from a descending trendline currently marking territory near the week’s peaks of 144.35, and the GBP/JPY is likely to see continued downside pressure heading into the late week as the pair fails to stake in a foothold above the 144.00 major level, with the pair’s near-term bottoms at 142.75 from last week’s bottom end remains close by.
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