The UK has reported a stronger and faster growth than previously expected with all sectors reporting strong gains, particularly within the service sector. This is the fastest the UK's economy has expanded within four years. With a strong economic outlook, this might lead the Bank of England to rise interest rates much sooner than expected, drawing strength to the GBP. Although it is too early to decide whether this growth is a spike or a steady sustainable rise, any positive news regarding UK growth will be received warmly.
The GBP/ JPY has been consolidating between two main key price points over the last several weeks. 135.505 and 130.786.
Buyers and Sellers have been coming into the market at the Fibonacci projection levels and so these are key levels to look at within the coming weeks. Should the GBP/ JPY find resistance once again around the 135.572 level and fall, the first key level to look for is 130.928. Should this level break then the GBP/ JPY may well complete the Fibonacci projection and find buyers at 125.502.
If the pair break out to the long side, then the first key level to look out for is 139.710. Should this level break then 145.136 is the next key price level to look out for.