GBP/JPY Drops Below 199.00 After Weak UK GDP Report
The GBP/JPY pair has fallen below the 199.00 mark after the UK released weaker-than-expected economic data. In May, the UK economy shrank by 0.1%, even though experts had expected a small growth of 0.1%. This is the second month in a row the economy has gone down, as April also saw a 0.3% drop.
This poor GDP result has put pressure on the British Pound. At the same time, the Japanese Yen gained some strength because traders are being cautious due to global trade tensions. Many investors prefer the Yen in uncertain times, as it’s seen as a safer currency.
On the technical side, GBP/JPY is still following a rising wedge pattern, but the recent drop is making traders watch closely. The pair is now trading near 198.80. If it keeps falling, the next support levels are around 198.00 and 197.32. On the other hand, if it climbs back above 199.00 and breaks past 199.80, it might aim for the 200.00 level again. But that will depend on how market sentiment changes in the coming days.
Impact:
If weak UK data continues, GBP/JPY could fall further. However, if market confidence returns or strong data appears, it might possibly move back toward 200.00.