Forex Trading: GBPJPY Technical Analysis – July 23, 2019

The Great Britain Pound (GBP) rose against the Japanese Yen (JPY) on Tuesday,  increasing the price of GBPJPY to more than 134.00 following some major economic releases. The technical bias may turn bullish since the pair’s price marked a lower high in the recent downside move.

GBP/JPY Technical Analysis

Currently, the currency pair is being traded around 134,61 a trendline resistance can be witnessed around 137.45, ahead of 139.26, the 23.6% Fib level support and then comes 142.62, the key horizontal resistance as demonstrated in the given below chart.

GBPJPY

 

On the downside,  a support can be seen around 134.60, the38.2% fib level support ahead of 133.17, the trendline support and then comes 132.15, the key horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish as long as 137.45, the key horizontal resistance level remains intact.

GBP 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.

 

 


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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