GBP/JPY Stays Strong After Breaking Key Level – Could More Gains Come?
The GBP/JPY currency pair recently broke out of an important chart pattern called an ascending triangle. This usually means the price might keep going up. After reaching a high near 198.20, the pair pulled back a little to about 197.35 during Tuesday’s European trading. This small drop is normal and shows the upward trend is still strong.
The Japanese yen got stronger because oil prices fell sharply after news of a ceasefire between Israel and Iran. When oil prices go down, Japan’s costs for buying oil get cheaper, which helps the yen. Meanwhile, the British pound got a boost from good UK business data, showing the economy is doing well.
From a technical view, breaking out of the triangle is a good sign for more gains. The price has support near 196.41 and faces resistance around 198.20 and 199.00. If it moves above these resistance levels, it could go even higher.
Impact:
GBP/JPY might keep rising if UK data stays good and global markets remain calm. But bad news from the UK or the world could slow down the gains.