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Forex Market: GBP/JPY daily forecast

During yesterday’s trading session GBP/JPY traded within the range of 172.47-173.00 and closed at 172.96, gaining 0.22% for the day.

At 7:27 GMT today GBP/JPY was down 0.03% for the day to trade at 172.90. The pair touched a daily low at 172.81 at 5:25 GMT.

Fundamental view

Activity in United Kingdom’s sector of services was probably slightly higher in July, with the corresponding PMI coming in at 58.0, up from 57.7 in June. The index is based on a survey, encompassing managers of companies, that operate in sectors such as transportation, communications, IT, financial intermediation, tourism. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 8:30 GMT.

Technical view

Screenshot from 2014-08-05 10:30:53

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 172.81. In case GBP/JPY manages to breach the first resistance level at 173.15, it will probably continue up to test 174.34. In case the second key resistance is broken, the pair will probably attempt to advance to 173.68.

If GBP/JPY manages to breach the first key support at 172.62, it will probably continue to slide and test 172.28. With this second key support broken, the movement to the downside will probably continue to 172.09.

In weekly terms, the central pivot point is at 173.07. The three key resistance levels are as follows: R1 – 173.74, R2 – 174.90, R3 – 175.57. The three key support levels are: S1 – 171.91, S2 – 171.24, S3 – 170.08.

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