#GBPJPY @ 168.075 hits a fresh daily low after the BoE announced its decision, though lacks follow-through. (Pivot Orderbook analysis)

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• GBP/JPY hits a fresh daily low after the BoE announced its decision, though lacks follow-through.
• The 7-2 MPC vote distribution in favour of the rate hike undermines the GBP and exerts pressure.
• A solid USD recovery weighs on the JPY and helps limit any meaningful downside for the cross.
• The risk-off impulse could benefit the safe-haven JPY and cap any meaningful gains for the cross.

The pair currently trades last at 168.075.

The previous day high was 168.24 while the previous day low was 166.73. The daily 38.2% Fib levels comes at 167.66, expected to provide support. Similarly, the daily 61.8% fib level is at 167.31, expected to provide support.

The GBP/JPY cross edges lower during the mid-European session and refreshes daily low after the Bank of England announced its policy decision. Spot prices, however, recover a few pips in the last hour and now seem to have stabilized in neutral territory, just above the 168.00 mark.

The UK central bank delivered a widely anticipated 50 bps rate hike at the conclusion of its December policy meeting. The British Pound, however, edges lower in reaction to a three-way MPC vote split, showing that two members voted to keep rates unchanged and one member voted to raise rates by 75 bps. The downside for the GBP/JPY cross, however, remains cushioned in the absence of any major surprises from the BoE.

The Japanese Yen, on the other hand, is weighed down by a solid US Dollar recovery from a six-month low touched earlier this Thursday. This is seen as another factor lending some support to the GBP/JPY cross. That said, the risk-off impulse – as depicted by a sharp intraday slide in the equity markets – seems to benefit the JPY’s relatively safe-haven status and should keep a lid on any meaningful upside for the cross.

Furthermore, a bleak outlook for the UK economy might hold back traders from placing aggressive bullish bets around the Sterling Pound. The aforementioned fundamental factors make it prudent to wait for a strong follow-through buying before positioning for any further appreciating move for the GBP/JPY cross.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 168.29 at the time of writing. Pair opened at 168.04 and is trading with a change of 0.15 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 167.07, 50 SMA 166.83, 100 SMA @ 164.55 and 200 SMA @ 163.46.

The previous day high was 168.24 while the previous day low was 166.73. The daily 38.2% Fib levels comes at 167.66, expected to provide support. Similarly, the daily 61.8% fib level is at 167.31, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 167.1, 166.16, 165.59
• Pivot resistance is noted at 168.61, 169.18, 170.11

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