The Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) on Tuesday with a price increase of more than 20 pips. The price increases in pursuit of a major economic news release followed by the technical bias which might remain bullish because of the higher high printed by the price during the last upside move.
GBP/JPY: Technical Analysis
At times, the GBPJPY is being traded around 141.28. As the price is increasing, it is likely to come across a resistance around 142.47, the trend line resistance which may push back the price towards the downside. Another resistance may appear near 145.00, the psychological number ahead of 148.87, the high of March 14, 2019, as shown in the graph above.
Looking upon the support levels, the price may receive 140.34, the key horizontal support level ahead of 139.21, the trend line support and then comes 135.06, the 38.2% Fib level which may prevent the price from falling below the said level as shown in the graph above.
Great Britain’s Market Manufacturing PMI Economic Release
Coming through the fundamental standpoint, In the UK, the figure concerning market manufacturing (PMI) is released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. Its the estimation of prevailing business conditions especially in the manufacturing sector since it contributes to a large part of country’s total GDP. It is to be noted that the market manufacturing PMI is considered a key indicator of the UK’s economy. Generally speaking, reading above 50 suggests a bullish market for the GBP while a figure below 50 indicates a bearish market for Great Britain Pound.
Currently, the price seems to be increasing and the technical bias is anticipated to remain bullish, therefore, trading the GBPJPY around current levels may not be a bad idea to start with. However, brokers also play an important role in successful trading when it comes to competitive spreads, and leverages.