FXStreet (Mumbai) – The GBP/JPY pair continues to trade well below its 50-DMA and clocked a three day low of 184.40 ahead of the UK GDP data.
Weekly loss a done deal?
A weekly loss is pretty much a done deal, given the pair is atleast 200 points down from its opening rate of 186.51. Moreover, it would take a surprisingly strong upward revision of the GDP figure to ensure the cross moves well above 186.51 and ends the week higher.
Thus, immediate focus now is on the second estimate of the UK Q3 GDP, which is expected to keep the growth rate unchanged at 2.3%y/y and 0.5%q/q.
GBP/JPY Technical Levels
At 185.40, the immediate support is located at 185.00, under which the losses could be extended to 183.22 (Aug 24 low). On the other side, resistance is located at 184.85 (560-DMA), above which gains could be extended to 185.54 (5-DMA).
(Market News Provided by FXstreet)