Forex Trading: GBPJPY Technical Analysis – August 30, 2019

The Great Britain Pound (GBP) slid down against the Japanese Yen (JPY) on Friday,  decreasing the price of GBPJPY to less than 130.00 following some major economic releases. The technical bias may turn bearish since the pair’s price marked a lower low in the recent downside, move printed in the graph.

GBP/JPY Technical Analysis

Currently, the currency pair is being traded around 129.55.  On the downside,  a support can be seen around 128.43, the trendline support ahead of 128.00, the psychological number and then comes 126.53, the key horizontal support as demonstrated in the given below chart.

GBPJPY Aug 30, 2019

 

A key horizontal resistance can be witnessed around 131.34, ahead of 134.32, the 38.2% Fib level support and then comes 139.14, the trendline resistance as demonstrated in the given above chart. The technical bias shall remain bearish as long as 131.34, the key horizontal resistance level remains intact.

Great Britain Pound Growth’s Rate

The UK economy picked up speed in the three months to July, boosted by warm weather and the World Cup.

The Office for National Statistics reported on Monday that GDP expanded by 0.3 percent in Jan, better than the 0.2 percent expected by City of London analysts and up from the 0.1 percent growth rate in Dec.

Over the three months, the growth rate picked up from 0.4 percent to 0.6 percent, the highest since the summer of 2017. Generally speaking, an increasing trend indicates a bullish market for Great Britain Pound (GBP) and vice versa.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, buying the GBPJPY around current levels can be a good decision in short to medium term. Since trading involves various other elements in order to stay safe such as choice of brokers, trading platform, leverage levels, negative balance protection, etc, therefore, exploring comparative websites may help you achieve your desired results.

 


Trading Forex does have its risks but with proper risk management and a consistent strategy that uses a form of analysis, be it technical, fundamental or sentimental, you can be hugely profitable. It is worth noting that trading, of course, has its pros and cons, we’ve highlighted those to make sure you’re aware of the key mistakes beginners often make.

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