The GBP/JPY currency pair gained above 197.50 on strong Pound sterling. It hit a high of 198.257 and currently trading around 197.82.Potential Reversal Zone (PRZ) sis et at 200.20.
The UK services sector grew at a slower pace in December 2024, according to the S&P Global Services PMI, which declined from 51.4 to 51.1 and is still above 50, meaning it's growing but at a slower pace. Employment declined sharply in the sector, mainly because of high payroll costs and not replacing people who left. Service providers fear that business will not grow well in the future due to the increasing cost of doing business and competition, mainly in the automotive sector. Overall, though the sector is still growing, challenges may face its growth in 2025.
Technical Analysis of GBP/JPY
The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming an overall up trend. Immediate resistance is at 199; a breach above this level could lead to targets of 200.20. Downside support is at 197.30 with additional levels at 196.45/195.75.
Market Indicators
CCI (50)- Bullish
Directional movement index - Bullish
It is recommended to buy on dips around 197.28-30 with a stop-loss at 196.50 and a target price of 200.20.
