GBP/JPY Skyrockets After Positive UK GDP Data: A Bullish Trend Unfolds

The GBP/JPY gained sharply after upbeat UK GDP data. It hit an intraday high of 1912.82 and is currently trading around 192.78. Intraday trend is bullish as long as support 188 holds.

The UK's GDP figures for today, February 13, 2019, were disclosed. During Quarter 4 of 2018, the UK economy grew 0.1% (October to December) according to key highlights released: Overall Growth. The previous quarter of 24 did not witness any increase, and this was the subsequent one. Real GDP is expected to increase by 0.4% in December of every year until 2024. The Real GDP is now estimated to have grown by 0.1% over the three months of December 20241. Annually, output GDP is expected to increase by 0.8% in 2024 as compared to 20231. During 20242, Real GDP experienced an increase of 0.9%. The services sector's output increased by 0.2% in Quarter 4, as per Sector Performance. 2024, The year 2020 saw a 0.4% increase in services output, 0.50% growth in production, and 0.22% decline in construction. In the fourth quarter, Nominal GDP is projected to have grown by 1.1%. 2024. A 0.1% reduction in Real GDP per capita was observed during the Quarter 4 of 2024. please use easy words

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 a bearish trend. Immediate resistance is at 193; a breach above this level targets of 193.36/194/195/195.60/196.25/197. Downside support is at 192.30 with additional levels at 191.50/190.44/189.80/189/188.

Market Indicators

CCI (50)- Bullish

Directional movement index - Bullish

 It is recommended to buy on dips around 192.30 with a stop-loss at 191.50 for a TP of 195.