GBPJPY S

GBP/JPY slightly rebounded following the release of UK inflation data. While heavy overhead supply remains stacked at 213.40/50, capping upside attempts.

Key Indicators

• Buyers are attempting to extend the rebound, but the recovery is facing selling pressure at the 20- and 50-day SMAs.

• The downsloping moving averages and the RSI in the negative territory indicate an advantage to bears.

Fundamental Context

The UK annual inflation rate decreased from 3.3% in March to 2.8% in April. This might put pressure on the British pound and raise expectations for further rate reduction by the BoE.