The GBP/JPY cross is holding strong around 189.20 in the European session, signaling positive momentum. This surge comes after the UK’s latest labor market data revealed a surprising drop in the unemployment rate, boosting the Pound Sterling (GBP). The Office for National Statistics (ONS) reported a decrease in the unemployment rate to 4.2% in April-June, defying expectations of a rise to 4.5%. Additionally, the Claimant Count Change increased by 135K in July, far exceeding the estimated 14.5K.
Despite the bearish tone on the 4-hour chart, with the RSI indicating downward momentum, there is potential for an uptrend as the RSI edges higher above the midline. A break above the Bollinger Band’s upper boundary at 189.50 could lead to a rally towards the psychological level of 192.00 and possibly even 193.26.
On the downside, initial support lies at 186.48, with key levels at 185.55-185.60 and 182.81 acting as additional support zones.
GBP/JPY 4-hour chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world, dating back to 886 AD. It is the official currency of the United Kingdom and accounts for 12% of all FX transactions globally, with key trading pairs including GBP/USD, GBP/JPY, and EUR/GBP. The value of GBP is heavily influenced by monetary policy decisions from the Bank of England, economic data releases, and the country’s trade balance.
Overall, the positive labor market data from the UK has boosted the GBP/JPY cross, offering potential for further upside movement. Traders should keep an eye on key levels and indicators for potential trading opportunities in the currency pair.