GBP/JPY retests 178 handle after downbeat UK growth numbers

FXStreet (Mumbai) - Sterling got smashed by the Japanese yen after UK Q4 GDP numbers revealed that the British economy expanded less than market estimates, recording weakest q/q growth since Q4 2013.

Currently, the GBP/JPY fell to 178.01 levels, down -0.31% on the day, after trading around 178.26-178-30 levels before the data release. The cross in GBP/JPY slumped after the UK economy slowed more than expected between in the fourth quarter of 2014 on the back of a sudden fall in the overall industrial production.

Gross domestic product (GDP) slowed to 0.5% between the third and fourth quarters, down from 0.7% in the previous three months and less than expectations of a 0.6% rise.

GBP/JPY Technical Levels

To the upside, the next resistance is located at 179 and above which it could extend gains to 179.26 levels. To the downside, immediate support might be located at 177.45 levels and below that at 177.15 levels.

UK Q4 2014 GDP disappointed expectations

The data released by the UK Office for National Statistics (ONS) showed preliminary UK Q4 GDP rose 2.7% year-on-year, missing the market expectation of 2.8%, and up from the previous quarter’s 2.6%.
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