UK GDP Flops Again: GBPJPY Drops to 207.22 But Bulls Hold the Line – Buy the Dip to 210?

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.