Forex Trading: GBPJPY Technical Analysis – May 27, 2019

The Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) on Monday,  increasing the price of GBPJPY to more than 139.00 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 139.32, the price may come across the trendline resistance which can be witnessed around 140.04, ahead of 140.94, the 23.6% Fib level support and then comes 142.44, the key horizontal resistance as demonstrated in the given below chart.

GBPJPY

 

On the downside,  a support can be seen around 138.57, the trendline support ahead of 137.52, the 23.6% Fib level and then comes 133.76, the key horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish as long as 139.35, 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.

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