The Bank of England (BOE) is expected to lower interest rates by 0.25% this week for the first time in two meetings.
In December, UK inflation (CPI and RPI) slowed down compared to the previous month. Other economic data, like retail sales and industrial production, also weakened. If the BOE signals more rate cuts in the future, the British pound may fall further.
The pound hit a peak in October and December last year, forming a “double top” pattern. Since late last month, it has been moving lower along the upper limit of the Bollinger Bands.
For now, support levels are seen around 190.00 yen (50% retracement) and 189.00 yen (lower Bollinger Band). If the price falls below 188.00 yen, it could drop further to around 185.00 yen.
GBP/JPY Expected Range for This Week: 193.50 – 190.00
Note: The information above does not guarantee profits. Please make your own decisions when trading.