⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

GBP/JPY Spikes Despite Weaker UK GDP Data

Posted Monday, September 30, 2019 by
Arslan Butt • 1 min read

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.

GBP/JPY 4 Hour Chart - Forex Trading Signals


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!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments