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GBPJPY Spikes on Soft UK CPI – But 208.80 Sellers Are Waiting

 

 

The GBPJPY pair saw a minor increase following the release of cooler-than-expected UK CPI data, reaching a high of 208.67 before settling near 208.61.UK CPI for January 2026 cooled to 3.0% y/y (from 3.4%), driven by sharp slowdowns in transport (2.7%) and food (3.6%) inflation, while core CPI eased to 3.1% — its lowest since August 2021.

Services inflation remained sticky at 4.4%, though restaurants/hotels rose slightly to 4.1%; monthly CPI turned negative at -0.5%.

The softer print boosts BoE May rate-cut probability to ~70%, supporting a modestly stronger GBP and keeping the path toward the 2% target alive by mid-2026.

 

Technicals

CMP -208.60

Trend

4- Hour chart

Value

 

 

55 EMA

208.32

CMP > value

Bullish

200- EMA

209.67

CMP < value

Bearish

365- EMA

210.50

CMP < value

Bearish

 

Major support- 207.50/206.75/205. Major resistance - 208.25/20920/210

 

Momentum indicator

Inference

Value

CCI(50)

above zero line (slightly bullish)

3.91

ADX

Bullish

Strength jumped from 19 to 20.53

 

It is good to sell on rallies around 208.78-80 with SL around 210  for a TP of 206.

 

 

 

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