The Pound Sterling did not react significantly following the UK inflation data report published in today's European session.
The consumer price index recorded an increase of 0.7% compared to expectations to remain at 0.6%. The producer price index also recorded a positive reading.
However, the Pound failed to show a clear reaction with the price movement remaining slow.
On the GBP / JPY currency pair price chart, the price is still seen moving in a bullish trend continuing the rise in the last week.
The Japanese yen remained weak as a safe-haven currency amid positive market sentiment since last week.
Coupled with the previous strengthening of the Pound, it can be seen that the price has jumped from the resistance zone 145.00 to the height of 147.500 as of today's trading.
The Asian session saw prices decline slightly but still move above the Moving Average 50 (MA50) support level over the 1-hour time frame which has not given a signal for a change in the downward trend.
If the price continues to rise in subsequent sessions, the target price target is 148,500. This level is a resistance zone in March 2019 trading.
But investors need to be careful in the event of a recession.
If the price drops below the support level of 146,600 and also the level of MA50, a lower decline is expected towards the RBS zone (resistance become support) at 145.00 again.
