The Great Britain Pound (GBP) inched lower against the Japanese Yen (JPY) on Wednesday, decreasing the price of GBPJPY to less than 138.00 following some major economic releases. The technical bias may turn bullish since the pair’s price marked a lower high in the recent downside move.
GBP/JPY Technical Analysis
Currently, the pair is being traded around 137.42, a trendline resistance can be witnessed around 138.66, ahead of 138.95, the 23.6% Fib level support and then comes 139.62, the key horizontal resistance as demonstrated in the given below chart.
On the downside, a support can be seen around 137.53, the38.2% fib level support ahead of 137.27, the trendline support and then comes 137.15, the key horizontal support as demonstrated in the given above chart. The technical bias shall remain bearish as long as 139.35, the key horizontal resistance level remains intact.
GBP Growth’s 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.
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.