#GBPJPY @ 165.682 GBPJPY trims a part of its intraday gains despite stronger UK consumer inflation data. (Pivot Orderbook analysis)

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• GBPJPY trims a part of its intraday gains despite stronger UK consumer inflation data.
• A modest recovery in the risk sentiment undermines the JPY and offers some support.
• Investors now look to the BoE’s Monetary Policy Report Hearings for a fresh impetus.

The pair currently trades last at 165.682.

The previous day high was 166.22 while the previous day low was 164.2. The daily 38.2% Fib levels comes at 165.45, expected to provide support. Similarly, the daily 61.8% fib level is at 164.97, expected to provide support.

The GBPJPY cross gains some positive traction for the third successive day on Wednesday and maintains its bid tone through the early European session. The cross, however, retreats a few pips from a multi-day high and slides back below the 166.00 mark following the release of UK inflation figures.

The UK Office for National Statistics reported that the headline Consumer Price Index (CPI) accelerated to 11.1% YoY in October from 10.1% recorded in the previous month. Additional details revealed that the core inflation, which excludes volatile food and energy items, rose 6.5% YoY during the reported month. The readings were higher than market estimates and adds to pressure on the Bank of England to continue raising borrowing costs.

The data, however, fails to provide any meaningful impetus to the British Pound amid worries about a deeper economic downturn. Traders also seem reluctant ahead of the BoE’s Monetary Policy Report Hearings later this Wednesday. This, in turn, prompts bullish traders to lighten their bets around the GBPJPY cross. In the meantime, a recovery in the risk sentiment undermines the safe-haven Japanese Yen and could offer some support to spot prices.

The initial findings, as reported by Associated Press (AP) citing unidentified US officials, suggest that the missile that hit Poland on Tuesday may have been fired by Ukraine at an incoming Russian missile. The headlines infuse some stability in the financial markets, which, in turn, dents demand for traditional safe-haven assets, including the JPY. This, in turn, warrants some caution before placing aggressive bearish bets around the GBPJPY cross.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 165.58 at the time of writing. Pair opened at 165.1 and is trading with a change of 0.29 % .

The pair is trading below its 20 Daily moving average @ 167.78, above its 50 Daily moving average @ 164.88 , above its 100 Daily moving average @ 163.95 and above its 200 Daily moving average @ 162.19

The previous day high was 166.22 while the previous day low was 164.2. The daily 38.2% Fib levels comes at 165.45, expected to provide support. Similarly, the daily 61.8% fib level is at 164.97, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 164.13, 163.16, 162.12
• Pivot resistance is noted at 166.14, 167.18, 168.15

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