FxWirePro- GBPJPY Trade Idea

The GBP/JPY currency pair showed a nice jump of more than 150 pips on the weak yen.. It hit a high of 198.45 and is currently trading around 198.18. The Potential Reversal Zone (PRZ) is set at 200.20.

Today's release of the UK GDP data for September 2024 is important for understanding the economy's performance.

In August, GDP grew by 0.2% after being stagnant in July with no growth. The slight increase in August was mainly due to improvements in the services sector, especially in transport and housing.

Analysts expect GDP to grow by another 0.2% in September, as consumer spending and service activities are gradually improving.

The UK has faced challenges like high inflation and changing consumer confidence, but some sectors, especially services and construction, are showing signs of strength.

In summary, today's GDP figures will help assess the UK's economic recovery, and positive results could increase optimism for the future.

Technical Overview:

The GBP/JPY is trading above both short-term and long-term moving averages, which suggests a minor uptrend trend. The immediate resistance level is at 198. If the price breaks this level, it could rise toward 198.10/ 198.50,199.60/ or even 200.20. Support is at 196.70, and if that fails, the price could drop to 195.80 or 195.37.

Indicator Analysis:

The CCI and ADX indicators suggest a bullish and neutral trend.

Trading Recommendation:

Consider buy on dips around 198 with SL around 197 and aim for a target price of 200.20/202.