GBP/JPY recovers from lows near 177.80

FXStreet (Mumbai) - GBP/JPY keeps losses, although swiftly recovered from fresh session lows reached on the release of downbeat UK trade balance data as traders now shift focus towards highly anticipated BOE meeting.

GBP/JPY back on 177

Currently, the GBP/JPY cross traded lower by -0.47% at 177.75 levels, witnessing a sharp drop from 177.82 levels. The cross in GBP/JPY quickly retraced a brief dip to lows and remains deep in losses as the poor UK trade data exacerbated the pain in the pound. The pound remains pressured against the yen as traders surrendered GBP ahead of BOE meeting.

The total trade deficit for February 2015 widened to GBP 2.9 billion from GBP 1.5 billion in the previous month. This was the largest monthly widening since January 2014.

On the other hand, USD/JPY remains slightly underpinned awaiting fresh direction from the upcoming US macro data which somewhat cushions the downside in GBP/JPY.

GBP/JPY Levels to consider

To the upside, the next resistance is located at 178.23 and above which it could extend gains to at 178.56 levels. To the downside immediate support might be located at 177.50 levels below that at 177.

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