Forex Trading: GBPJPY Technical Analysis – December 27, 2019
The Great Britain Pound (GBP) grew higher on the last day of the week against the Japanese Yen (JPY), raising the GBPJPY’s price to over 142.00. The price increases with favorable economic news being published. Look good for the Great Britain Pound (GBP) this week as it continued to increase for three days, but at the beginning of the trading week, it was a bearish candle. Talking about the technical bias, it might remain bullish because the price printed a higher high in the recent upside move.
GBP/JPY: Technical Analysis
As of writing this piece, the GBPJPY is being exchanged for the price near 143.31. The price may observe a few resistance levels while moving upside. The major horizontal resistance just stands ready to push the price back towards downside near 143.44, ahead of 143.38, the trendline resistance and then the Fibonacci level may restrict the price around 145.38, preventing it from increasing above the said level as shown in the graph below.
Coming towards the downside, there may be multiple support levels seen on the graph with the first one being the key horizontal support level which may come across the price around 142.36, helping the price to sustain around the current levels. Another support level may support the price near 139.57, the psychological number and the comes 139.57, the trend line support as shown in the graph above.
GBP Public Sector Net Borrowing
From the Fundamental viewpoint, a look at the latest data from The Net Borrowing, which dropped from £ 8.25 B to £ 4.87 B, also exceeded the economist’s estimate of £ 5.6. When net borrowing rises, the UK reserves are surplus, which should be positive for GBP. It, therefore, pointed to the likelihood of strengthening the GBP currency in the near future.
Trading GBPJPY around current levels for a long and short term position might be a good idea.