The Great Britain Pound inched higher against the US Dollar on Monday after a drop-down for the last two consecutive days increasing the price to more than 139.00. The price increases amid the release of major economic news. During the last upside move, the price printed a higher low pattern on the graph showing that the technical bias might remain bullish.
GBP/JPY: Technical Analysis
While writing this piece, the GBPJPY is being exchanged around 139.80, with a mix of resistance levels coming ahead. The price may find it difficult to pass through the immediate resistance level which stands around 141.35, the trend line resistance. Another trend line resistance may also come at 143.09, pushing the price downwards. Then comes a key horizontal level 148.87, which may act as strong resistance keeping the price below the said level as shown in the graph.
Moving towards the downside, support may be seen around 137.70, the key horizontal support and 131.75, the Fibonacci level. Both of these points might prove to be strong support for the price helping it to stay above the quoted levels. If the price continues dropping down, it may then receive support around 127.15, the trend line support as shown in the graph above.
GBP ILO Unemployment Rate Release
From a fundamental perspective, the rate of ILO Unemployment put forward by the National Statistics measures the unemployed workers as a proportion of the civilian labor force being employed in total. It is known to be a key indicator of the country’s economy. If the rate increases, it shows a lack of expansion within the U.K. labor market leading to a weaken U.K. economy. Generally speaking, a decrease shows a bullish market for the GBP and vice versa.
Since the technical bias is anticipated to remain bullish, therefore, trading the pair around current levels for both short and long term might not be a bad idea.
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