GBPJPY Falls Sharply Below 128 After Weak GDP Data
GBPJPY breaks below the 128 mark a level that we haven’t seen since November 2016 after disappointing UK GDP figures. The office of National Statistics reported that the UK Gross Domestic Product (YoY) came in at 1.2% below forecasts of 1.4 in 2Q, 2019 the month over month figure came in at 0%, below expectations of 0.1% in June. On the other side of the equation the Japan Gross Domestic Product (QoQ) came in at 0.4% topping expectations of 0.1% in 2Q the annualized figure came in at 1.8% above forecasts of 0.4% in 2Q
GBPJPY gives up over 90 pips after the GDP figures and now trades at 127.92 as the selling pressure accelerates. We have to go back to 2016 to find a support at 126.68 from November 6th 2016 while a break below will force the price down to 126.47 the low from October 30, 2016. On the upside it is critical for the pair to close today above the 128 level before an attempt to regain the 128.73 where the 50 hour moving average crosses. The RSI in the daily chart nose dived down to 20.78 but it looks like has further room for correction down to previous low at 16.70.