GBPJPY Technical Analysis – February 12, 2021

The Great Britain Pound (GBP) slid down against the U.S. Dollar (USD) on Friday, decreasing the price of the GBPJPY pair to less than 145.00, ahead of the release of UK Consumer Price Index news.

Technical Analysis
As of this writing, the GBPJPY pair hovers around 144.65, with a few support levels seen ahead. If the price continues to drop, it might find some sustainability near the given price levels.

Support
144.03 – the low of February 09, 2021
143.00 the psychological level
142.20 – the major horizontal support

On the upside, the price of the pair might face some resistance around the listed price tags.

Resistance
145.05 – the major horizontal resistance level
146.00 – the psychological number
147.93 – the key horizontal resistance

UK Consumer Price Index (Yearly) News
The National Statistics, UK plans to release numbers for the Consumer Price Index (CPI) on Wednesday (February 17, 2021). According to economists, the CPI registered a reading of 0.5 percent in January 2021, as compared to the reading of 0.6 percent in the same month the year before.

The stats for the Consumer Price Index reflect movements in the retail prices of goods and services selected from the representative shopping baskets of different stores on a sampling basis. Inflation in the country affects the purchasing power of GBP. The CPI is a significant indicator to measure changes in purchasing patterns of consumers and expected inflation rates. Generally speaking, a high reading suggests a bullish market for the GBPJPY pair ahead and vice versa.

Conclusion
Considering the price movement of the pair over the last few days, buying the pair around current levels might help to generate some profit in the short term.