The GBP/JPY gained sharply above 190 as the Pound sterling strengthened further. It hit an intraday high of 192.32 and is currently trading around 191.67. Intraday trend is bullish as long as support 188 holds.
Bank of England Governor Andrew Bailey will appear before the Treasury Committee on March 5, 2025, an event that financial markets have been eagerly anticipating after recent inflation and monetary policy discussion. Bailey has contended that the anticipated rise in inflation next year is temporary, supporting potential future interest rate cuts in an era of disinflation, even after the bank last week reduced the benchmark interest rate to 4.5% and reduced the 2025 economic growth forecast to 0.75%; additionally, Bailey has noted addressing the dangers presented by non-bank financial intermediaries through methods like stress tests, and the British Pound also settled near 1.2800 against the US Dollar after such reassurances.
Technical Analysis Points to Further Downside
The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bullish trend. Immediate resistance is at 192, a breach above this level targets of 193/195/196. Any close above 192 in the 4-hour chart confirms further bullishness. Downside support is at 191.20 with additional levels at 190.50/189.80/188.75/188/187.25/186/185.
Market Indicators
CCI (50)- Bullish
Directional movement index - Bullish
It is recommended to buy on dips around 191 with a stop-loss at 190 for a TP of 193/195.
