Forex Trading: GBPJPY Technical Analysis – November 15, 2019
The Great Britain pound (GBP) started off well this Friday, it inched higher against the Japanese Yen (JPY), increasing the price to more than 139.00. The price went up amid favorable economic release. The technical bias seems to remain bearish since the price marked a higher low in the previous upside move.
GBP/JPY: Technical Analysis
With a few resistance ahead, the pair is being traded around 139.84, it is likely to face resistance around two points standing close to each other such that one is 139.83 and the other is 140.39, both of them are generally known as trend lines resistance levels. The price may then be meeting with a key horizontal resistance level around 141.47 which may stop the price from increasing above the said level as shown in the graph below
While coming downside, support level may be seen around 137.97, its a 23.6% Fib level which is likely to help the price stay above the said level. A major horizontal support level and a trend line support are standing next to provide support to the price so it may not fall further. However, the technical bias may not be favorable for the GBPJPY in the coming week as long as the price is able to break the resistance levels discussed above.
Great Britain Pound Economic Release
In the UK, The rate for the GDP remained higher this month as compared to the month before, up beating the economist expectation. It is put forward by the National Statistics and measures the absolute estimation of everything being equal and administrations delivered by the UK. The GDP is considered a major economic indicator of the UK financial movement. Generally speaking, a rising pattern positively affects the GBP, while a falling pattern is viewed as negative (or bearish).
Since the technical bias may remain bearish, trading the pair around current levels isn’t suggested. However, a short term position may bring some benefit for sure. This also depends on the brokers you chose since some of them provide high margin levels where others offer tight spreads.
Tip: Be always careful while choosing your broker. You may also check our recommended brokers here.