The Great Britain Pound (GBP) slid down against the Japanese Yen (JPY) on Friday, decreasing the price of GBPJPY to less than 146.00 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 145.38, the 61.8% Fib level resistance can be witnessed around 145.86, ahead of 146.64, the trendline resistance and then comes 147.01, the key horizontal resistance as demonstrated in the given below chart.
On the downside, the price may come across support around 144.92, the major horizontal support ahead of 144.00, the 61.8% Fib level support and then comes 141.00, the low of February 15, 2019, as demonstrated in the given above chart. The technical bias shall remain bullish as long as 144.93, the key horizontal support 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 July, better than the 0.2 percent expected by City of London analysts and up from the 0.1 percent growth rate in June.
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.
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.