Forex Trading: GBPJPY Technical Analysis – February 19, 2019

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The Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) on Tuesday,  increasing the price of GBPJPY to more than 144.00 following some major economic releases. The technical bias may turn bearish since the pair’s price marked a lower low in the recent downside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 144.30, a resistance can be witnessed around 145.21, the 61.8% Fib level resistance ahead of 147.39, the trendline resistance and then comes 153.70, the key horizontal level as demonstrated in the given below chart.

GBPJPY

 

On the downside, the price may come across support around 139.96, the immediate horizontal support. Another support level may come around 136.72, the 61.8% Fib level support, ahead of 131.50, the low of January 03, 2019 as demonstrated in the given above chart. The technical bias shall remain bearish unless 145.21, the major 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 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.

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.

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