The price chart of the GBP/JPY currency pair, which is one of the traders' favourites, indicates a different direction of movement at the end of this week.
This was driven by the market's reaction to the central bank of England's meeting yesterday with interest rates raised by 25 basis points to 5.25% as expected.
However, the Pound Sterling is seen to fail to show a positive reaction despite the interest rate increase, instead experiencing a decline.
Investors did not see a clear direction for the BOE's monetary policy as the vote on interest rates was also mixed, with some supporting an increase of up to 50 basis points, and others voting to keep it on hold.
Analysts are also worried that interest rates that are too high could affect economic growth in the UK when inflation is still at a high level.
The latest economic data after this will be monitored to get the next indication.
The price on the GBP/JPY chart which showed a few days of flat movement above the previous 182.00 level started to plunge beyond it.
Indicators on the Moving Average 50 (MA50) indicator on the 1-hour time frame on the chart remain bearish where the price is blocked and moves below the line.
Yesterday's decline had reached around 180,500 before rising slightly at the close of the New York session.
The horizontal price movement continues trading today (Friday), but has not yet passed the MA50 barrier which expects further decline to continue.
If the decline occurs, the price will go up to around 179.00 which is the closest concentration level before further decline can reach around 176.00.
However, if the price makes a surge in the trading of these final sessions, a rise above the MA50 barrier and the 182.00 level will be an early signal for a bullish move.
The upside is likely to break this week's levels before heading towards the 185.00 target for the next high.
