GBP/JPY Dips as Weak UK GDP Data Sparks Bearish Sentiment

The GBP/JPY lost its shine on weak UK GDP data. It hit an intraday high of 191.54 and is currently trading around 190.34. The intraday trend is bearish as long as resistance 192 holds.

UK GDP Report Overview

The latest report on UK GDP for November 2024 reports a growth of 0.1%, less than the estimated growth of 0.2%. It follows a reduction of 0.1% in October and indicates that recovery is slow. The increase came mainly from a modest increase in the output of services. The economy has experienced contractions in the past months, leading to a lack of confidence in its performance. Analysts are tracking these numbers because they may eventually determine the moves the Bank of England will have to make about interest rates amidst continuing economic adversity.

Technical Analysis of GBP/JPY

The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming an overall downtrend. Immediate resistance is at 191; a breach above this level targets of 191.60/192/193/193.51/194.52/195/195.60/196.25/197. Downside support is at 191.50 with additional levels at 191/190.

Market Indicators

CCI (50)- Bearish

Directional movement index - Bearish

 It is recommended to sell on rallies around 191 with a stop-loss at 192 for a TP of 188.