GBP/JPY: Sell on Rallies as Upside Potential Limited

 GBP/JPY lost its shines despite upbeat UK GDP.  It hits an intraday low of 186.02 and is currently trading around 186.60. Intraday trend is bearish  as long as resistance 190 holds.

The UK GDP rose by 0.5% in February 2025, beating economists' expectations and recording its highest monthly increase in eleven months, led by broad gains in services, manufacturing, and construction. The growth, with services rising 0.3%, manufacturing by 1.5%, and construction by 0.4%, marks a welcome return to economic activity, as GDP was 1.4% above a year earlier and rose 0.6% over the three months to February. But this positive motion is ahead of economic adversity, including the potential effect of imminent U.S. tariffs to elevate the cost of British exports.

The GBP/JPY pair is trading below 34 and below 55 EMA (Short-term) and 200 EMA (long term on the 4-hour chart, confirms a mixed trend.  Immediate resistance is at 189,a breach above this level targets of 190/191/191.75/192.30/193. Downside support is at 188 with additional levels a 187.70/187.10/186.45.

Market Indicators

CCI (50)- Bearish

Directional movement index - Neutral

Trading Strategy: Buy on dips

 It Is good to sell on rallies around 187.50-55  with SL around 189 for a TP of 183.