#GBPJPY @ 166.011 remains sidelined after falling the most since early November. (Pivot Orderbook analysis)

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• GBP/JPY remains sidelined after falling the most since early November.
• Risk-aversion, fears surrounding labor strikes in UK weighed on the prices.
• Japan data, BOE Governor Bailey’s speech will direct intraday moves, bears may keep the reins amid sour sentiment.

The pair currently trades last at 166.011.

The previous day high was 168.8 while the previous day low was 167.63. The daily 38.2% Fib levels comes at 168.35, expected to provide resistance. Similarly, the daily 61.8% fib level is at 168.08, expected to provide resistance.

GBP/JPY stays defensive around 166.00 during early Tuesday, after posting the biggest daily loss in three weeks the previous day. In doing so, the cross-currency pair portrays the market’s inaction, or a search for more clues, following a negative start to the key week.

Looming fears of public servants’ nationwide strike in the UK joined British Prime Minister (PM) Rishi Sunak’s readiness to jostle with China and the Covid woes emanating from the dragon nation to weigh on the GBP/JPY prices the previous day. On the same line could be the downbeat prints of the Confederation of British Industry’s (CBI) latest Distributive Trades Survey for November.

As per the latest readings, published on Monday, the CBI Retail Sales for November printed -19 figures versus +18 prior while the gauge showing the Expected Retail Sales for December slumped to the lowest since March 2021, to -21 versus -9 previous readings.

UK PM Rishi Sunak’s indirect attack on Chinese policies joined British Foreign Secretary James Cleverly’s statements pushing Beijing to take note of the lockdown protests to highlight the recently sour terms between Britain and China. On the other hand, “Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over the restrictions flared for the third day and spread to several cities, with police on Monday stopping and searching people at the sites of weekend protests in Shanghai and Beijing,” reported Reuters. The news joins the all-time high of daily virus infections from the dragon nation to weigh on the sentiment.

Against this backdrop, Wall Street closed in the red and the US Treasury yields improved after an initial slump.

Looking forward, Japan’s Retail Trade and employment numbers for October can offer immediate directions to the GBP/JPY pair traders ahead of a speech from the Bank of England (BOE) Governor Andrew Bailey.

That said, the risk-off mood could gain additional support from BOE’s Bailey and may drown the pair further toward the south amid the recent wave of speculations supporting easy rate hikes.

A daily closing below the 21-DMA, around 166.90 by the press time, directs GBP/JPY bears towards a seven-week-long ascending support line, near 164.80 at the latest.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 166.11 at the time of writing. Pair opened at 168.21 and is trading with a change of -1.25% % .

The pair is trading below its 20 Daily moving average @ 167.14, above its 50 Daily moving average @ 165.22 , above its 100 Daily moving average @ 164.25 and above its 200 Daily moving average @ 162.63

The previous day high was 168.8 while the previous day low was 167.63. The daily 38.2% Fib levels comes at 168.35, expected to provide resistance. Similarly, the daily 61.8% fib level is at 168.08, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 167.63, 167.05, 166.46
• Pivot resistance is noted at 168.8, 169.38, 169.96

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