GBPJPY pared some of its gains after dismal UK GDP data. Intraday trend is bullish as long as support 207.40 holds. At the time of writing, it reached a low of 207.22 and is now trading at about 208.36.
UK GDP unexpectedly shrank for a second consecutive month in October 2025, falling 0.1% m/m against expectations of a 0.1% rebound, confirming that the economy is flatlining after two straight contractions and near-zero Q3 growth of just 0.1% q/q. Persistent weakness in manufacturing and production continues to offset meager gains in services and construction, pushing the rolling three-month growth rate to a barely positive 0.1% and annual momentum down to 1.1%. The downside surprise strengthens the case for a more dovish Bank of England in early 2026, putting renewed downward pressure on sterling and gilt yields as hopes for a meaningful Q4 recovery fade fast.
Oscillators and moving averages to forecast the trend of GBPJPY
CMP- 208.35
EMA (one-hour chart)
55-EMA- 208.35
200-EMA- 207.54
365-EMA- 206.74. The pair trades above the short (55- EMA) and long-term moving average(365 EMA and below 200 EMA).
Major Support- 208.20. Any breach below will drag the pair down 207.40/207/206.47/205.40/205.
Major resistance - 208.75. Any break above confirms minor bullishness; a jump to 209/210/210.58/212 is possible.
Indicator (1-hour chart)
CCI (50)- bearish
Average directional movement Index- Neutral. All indicators confirm a neutral trend.
It is good to buy on dips around 208 with SL around 207.40 for a TP of 210/210.58.
