GBP/JPY Spikes Despite Weaker UK GDP Data
During the European session, the GBP/JPY pair dipped slightly but recovered soon after testing the low of 132.900. It’s the double bottom level which caused a bullish bounce off in the GBP/JPY currency pair.
Earlier today, the UK gross domestic product (GDP) in volume terms was expected to have slid by 0.2% in Q2 2019, unrevised from the earlier estimate.
Comparing the economic event with past data, the British GDP figure has increased by 1.3% in Q2 2019; dropping from 2.1% to Q1 of 2019.
Besides that, the UK current account deficit has fallen to a dramatically low level of -25.2B, missing economists’ forecast of -19.2B.
Consequently, the bullish trend in GBP/JPY has weakened, and it’s keeping GBP/JPY in a sideways range of 133.800 – 132.950.
On the technical side, GBP/JPY has immediate support at 132.900 along with resistance at 133.600. The 50 periods EMA is also extending resistance at 133.650, signaling odds of a bearish reversal in GBP/JPY. A bearish breakout can extend sell-off until 131.900 today.
Support Resistance
132.2 133.17
131.78 133.71
130.82 134.67
Key Trading Level: 132.74
GBP/JPY – Forex Trading Signal
I will be looking to stay bearish below 132.900 level today with a stop loss above 133.250 and take profit of around 132 and 131.750.
Good luck!
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