- November 12, 2020
- Posted by: Analysis Team
- Category: Forex News
- GBP/JPY extends pullback from nine-week high, refreshes intraday low.
- Consolidation takes clues from RSI conditions, October high on the bears’ radar.
- UK Q3 GDP could reverse the previous -19.8% figures with +15.8% growth.
GBP/JPY drops to the day’s low of 138.94, currently down 0.25% around 138.97, during pre-London open trading on Thursday. The Pound cross rose to the highest since September 07 the previous day before reversing from 140.32 amid overbought RSI.
Although failures to keep 140.00 directs the sellers towards the October month’s high near 137.85/80, any further weakness could be tamed by the 50-day SMA near 136.50.
It should also be noted the late August bottom near 138.25 and the 138.00 round-figure add filters to the south.
Meanwhile, the 140.00 threshold and the 140.50 becomes the key hurdle to the north before directing GBP/JPY bulls towards the September high near 142.41.
Other than the technicals, which suggest further weakness of the quote, the preliminary readings of the UK’s third-quarter (Q3) GDP will also be the key catalyst to watch.
Read: When is the UK Q3 GDP release and how could it affect GBP/USD?
GBP/JPY DAILY CHART
Trend: Further weakness expected