The currency pair dropped aggressively in the yesterday’s trading session and seems to heavy to be stopped at this moment. GBP/JPY is trading in the red even if the Nikkei stock index has managed to reach new highs. The JP225 increased as much as 21392 level, but failed to stay there and has retreated a little.
The Nikkei maintains a bullish perspective on the daily chart, a further increase should force the Yen to drop, but the Japanese currency is not impressed by the index’s rally.
The Cable needs serious support from the UK’s data to be able to drag the rate higher again. The United Kingdom Unemployment Rate could remain steady at 4.3% in August, while the Claimant Count Change could be reported at 1.3K, versus the -2.8K in the former reading period. Moreover, the Average Earnings Index could increase by 2.1% again.
Price dropped and failed to stay above the 148.46 broken horizontal resistance, signaling that a further drop is favored. A retest of the mentioned upside obstacle will confirm a drop towards the first warning line (wl1) of the ascending pitchfork, where he may find support again. Technically, it should drop after the failure to stabilize above the 151.66 and after the failure to approach and reach the lower median line (lml) of the ascending pitchfork.
