House prices in the UK according to Nationwide dipped 1.3% m/m (16.6%y/y) in Jan, slightly better than market forecasts of a decline of -1.7% m/m(-16.7% y/y. January's numbers reflected a slight easing in the pace of deceleration with Dec. having seen a slide of 2.5% m/m (15.9% y/y). The housing market has been in a downturn since Nov 2007. The GBPUSD fell to 1.4094, down 1%; GBPJPY down to 126.8 and down by nearly 1.5%.
Buy GBP/JPY on signs of a continuation pattern.
The buying point is at 127.44; Previous resistance is the take profit at 129.60; Fibonacci 38.2% is the stop loss at 125.30
The selling point is at 124.80; Fibonacci 23.6% is the take profit at 122.91; Fibonacci 50% is the stop loss at 127.39
Technical: Sterling bounced back after a resistance became a support level. A move back higher could set up a test of 129.60
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