Following Tuesday’s release, the Great Britain Pound dropped its price to below 145.00 against the Japanese Yen, its the second day, the GBP marked a bearish candle. The technical bias may remain bullish due to the lower high price print during the last downside move.
GBP/JPY: Technical Analysis
As of writing this piece, the GPBJPY is being exchanged for the price being quoted near 144.07, there may be number of support levels that might help the price to sustain around the current level, the price may receive the first immediate support at 142.82, the Fibonacci level of 23.6%, ahead of 142.02, the coincidence of two trendlines then at 137.28 the major horizontal support level stands as shown in the below graph.
Moving to the upside, there are few resistance levels seen in the above graph including the trendline resistance which may com around 147.85, ahead of 148.00, the psychological number then at 149.65, the major horizontal resistance may restrict the price from increasing above the said level, the technical bias remains bullish until the major support level of 137.28 remains intact.
GBP Gross Domestic Product
The Gross Domestic Product and Industrial Output (YOY) moved from a negative percentage to a positive one from the fundamental point of view. They calculate the total cost of all British-produced goods and services and are seen as a significant measure of economic development in the UK. Typically an upward trend has a positive effect on GBP, while a downward trend is considered as negative for GBP.
The market is bullish and thus offers favorable conditions for short and medium-sized traders who wish to trade in GBPJPY. Likewise, the market is also open to long-standing traders.