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GBP/JPY capped below 185 ahead of UK GDP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The cross in the GBP/JPY extends weakness for the second day in a row today, and tested the key support near 184.45 region, before recovering slightly to the hourly pivot.

    GBP/JPY consolidates for further downside?

    Currently, the GBP/JPY pair trades -0.25% at 184.65, bouncing session lows reached at 184.46. The cross remains pressured mainly on the back of rising demand for safe-havens such as the yen amid ongoing risk-off slide in the European equities.

    While, minor sell-off in the GBP/USD pair ahead of the much-awaited UK Q3 GDP second estimates, also contributes partly to the downside in GBP/JPY. Focus now remains on the upcoming UK growth numbers.

    The UK’s economic growth is expected to slow down to 0.5% in Q3 from 0.7% seen in Q2. The slower pace of growth is expected due to weak trade, which may overshadow solid retail sales growth in the UK.

    GBP/JPY Technical Levels

    To the upside, the next resistance lies at 185.34 (1h 100-SMA), above which it could extend gains to 185.70 (Nov 26 High). To the downside, the cross finds immediate support at 184.25 (Nov 23 Low), below that 183.51 (Nov 6 low), could act as a major support.
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