The Great Britain Pound (GBP) fell against the Japanese Yen (JPY) on Monday, this led to a decrease in the price of GBPJPY making the figure appear less than a total of 147.00. The price of the pair decreased after a major economic news broke. The technical bias may remain bullish since the pair’s price marked a higher high in the recent upside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 146.57, since the price is decreasing it may come across a support around 145.30, the 61.8% Fib level support is the point of reference. Another support level is likely to come around 142.78, the trendline support ahead of 142.58, another major horizontal support as demonstrated in the given below chart.

Coming towards the upside, a resistance can be witnessed around 148.02. This is an immediate horizontal resistance level which may keep the price from passing through this level. Another resistance may come near 149.45, the trend line resistance and then 149.70, the major horizontal resistance level as demonstrated in the given above chart. The technical bias shall remain bullish unless 145.30, the key horizontal resistance level remains intact.

Great Britain’s Growth

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) whereas the downward trend implies a bearish market for Great Britain Pound (GBP).

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, selling the GBPJPY around current levels can be a good decision in short to medium term.