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Instrument: GBPJPY
Bullish Preference:
A buy position is envisaged if the price trades above 182.030 with take profit at 182.244.
Bearish Preference:
A sell position is envisaged if the price trades below 181.639 with take profit at 181.402.
Fundamentals:
None with High Impact
Comment:
The subdued reaction to the surprise interest rate hike by the Bank of England (BoE) last week could be a sign that the British pound’s rally could be due for a minor setback against some of its peers. BoE surprised markets by raising its benchmark rate by 50 basis points (Vs 25 basis points expected) to 5%, the highest level since 2008, and its largest increase since February, noting second-round effects in domestic price and wage developments generated by external cost shocks are likely to take longer to unwind than they did to emerge. Data published last week showed UK headline inflation remained flat at 8.7% on-year in May, putting pressure on the central bank to act.
Analysis: SCRUM Team
