Forex Trading: GBPJPY Technical Analysis – May 13, 2019

The Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) on Monday,  increasing the price of GBPJPY to more than 142.00 following some major economic releases. The technical bias may turn bearish since the pair’s price marked a higher low in the recent upside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 142.79, the price may come across the major horizontal resistance which can be witnessed around 142.19 ahead of 144.77, the 23.6% Fib level resistance and then comes 146.10, the trendline resistance as demonstrated in the given below chart.

 

On the downside, a support can be seen around 140.17, the key horizontal support level ahead of 138.10, the 38.2% fib level support and then comes 131.51, the low of Januar 03, 2019 as demonstrated in the given above chart. The technical bias shall remain bearish as long as 144.76, the key horizontal resistance level remains intact.

UK’s Growth 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.

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