GBP/JPY digesting stellar UK retail sales-led gains to 132.00 handle

Having posted a daily low at 130.00 psychological mark, the GBP/JPY cross spiked through 132.00 mark following stellar UK retail sales data. The pair, however, has retraced from session high level of 132.26 and is currently hovering around 132.00 handle.

The British Pound caught up strong buying interest after UK monthly retail sales for July posted an impressive growth of 1.4% on a monthly basis, surpassing the most optimistic estimates and reversing 0.9% declines recorded in June. 

Adding to this recovery in the USD/JPY major, back above 100.00 mark, provided an additional boost to the GBP/JPY cross. 

From technical perspective, the cross has confirmed a break-out of a short-term descending trend-channel and hence, increases the prospects of further recovery in the near-term. 

Technical levels to watch

The descending trend-channel break-point near 131.00 region now seems to act as immediate support. Weakness below this resistance turned immediate support is likely to be bought into and hence, should limit any further downside for the cross near 130.65-60 horizontal support.

Meanwhile on the upside, 132.50 level could act as immediate resistance, above which the upward trajectory is likely to get extended, beyond 133.00 round figure mark, towards its next major resistance near 133.75-80 region.