HomeAnalysis NewsForex Trading: GBPJPY Technical Analysis – May 16, 2019

Forex Trading: GBPJPY Technical Analysis – May 16, 2019

16 May 2019 By Galina Mikova

The Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) on Thursday,  increasing the price of GBPJPY to more than 140.00 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 140.69, the price may come across the trendline resistance which can be witnessed around 141.311, ahead of 144.46, the 38.2% Fib level support and then comes 146.14, the key horizontal resistance as demonstrated in the given below chart.

GBPJPY

 

On the downside,  a support can be seen around 139.84, the major horizontal support ahead of 137.52, the 23.6% Fib level support and then comes 133.86, the low of January 03, 2019 as demonstrated in the given above chart. The technical bias shall remain bearish as long as 141.70, 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.