Forex Market: GBP/JPY daily forecast

During yesterday’s trading session GBP/JPY traded within the range of 172.65-173.06 and closed at 172.91.

At 7:24 GMT GBP/JPY traded at 172.89, losing 0.03% for the day. The pair touched a daily low at 172.80 at 7:00 GMT.

Fundamental view

The advance reading of the British GDP probably rose to 3.1% in the second quarter compared to a year ago, from a final reading of 3.0% in the first quarter.

The Gross Domestic Product is an integral part of the UK public account and measures the total economic activity of the country. GDP is still referred to as one of the main “common indicators” for economic activity and presents economic growth in the last quarter. This is the first calculation of the indicator based on production data and is published three-and-a-half weeks after the end of the quarter. This is a preliminary value of the indicator and is presented as a percentage change compared to the corresponding quarter a year earlier.

The Office for National Statistics is scheduled to release an official report at 08:30 GMT. In case, the British GDP grew at a faster-than-expected pace, sterling’s demand will be heightened.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 172.87. In case GBP/JPY manages to breach the first resistance level at 173.10, it will probably continue up to test 173.28. In case the second key resistance is broken, the pair will probably attempt to advance to 173.51.

If GBP/JPY manages to breach the first key support at 172.69, it will probably continue to slide and test 172.46. With this second key support broken, the movement to the downside will probably continue to 172.28.