FXStreet (Mumbai) – The GBP/JPY extended gains to trade above 173.00 after the data in the UK showed service sector expansion gathered pace in January.
Eyes Fibo resistance
The pair’s rebound from 5-DMA support at 171.96 followed by a break above 173.00 handle on the back of an upbeat UK services PMI figure has opened doors for 173.46 (38.2% of 188.81-163.98). Sterling was already on the rise ahead of the data and the rise in services PMI to 55.6 (as opposed to the expected fall to 55.3 from Dec’s 55.5) only added to the bid tone around the currency.
Meanwhile, moderate losses in the equities have not resulted in JPY demand so far. Consequently, the cross clocked a high of 173.21 before trimming gains slightly to trade around 173.10 levels.
GBP/JPY Technical Levels
The immediate resistance is seen at 173.46 (38.2% of 188.81-163.98), above which the prices could test a major hurdle at 175.02 (Feb 1 high). On the other hand, a break below 171.96 (5-DMA) would expose 170.77 (10-DMA).
(Market News Provided by FXstreet)