The GBPJPY pair is continuing to rise below the 183.00 area on Thursday, in anticipation of significant data releases in the UK.

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• GBP/JPY extends it upside below the 183.00 area on Thursday ahead of the UK top-tier data.

The pair currently trades last at 182.914.

The previous day high was 183.02 while the previous day low was 182.37. The daily 38.2% Fib levels comes at 182.77, expected to provide support. Similarly, the daily 61.8% fib level is at 182.62, expected to provide support.

The GBP/JPY cross trades in positive territory for four consecutive days. The cross currently trades around 182.90 during the Asian session on Thursday. Investors await the top-tier economic data from the UK for fresh impetus.

In its August policy meeting, the Bank of England (BoE) raised interest rates by 25 basis points (bps) to a 15-year high of 5.25% from 5%. Last week, BoE chief economist Huw Pill stated that interest rates would remain high for a longer period. However, the central bank will respond as the economy and data evolve.

Markets anticipated that the BoE would likely hike two additional rates by the end of the year as inflation remains high. Investors will take cues from the UK Gross Domestic Product (GDP) on Thursday. The annual growth rate is expected to remain at 0.2%. The softer growth number could refrain the Bank of England (BoE) from aggressively tightening policy. This, in turn, might cap the upside in the Pound Sterling.

On the Japanese Yen front, the latest data from the Bank of Japan (BoJ) showed that the Producer Price Index (PPI) for July fell to 3.6% from 4.1% prior and above the expectation of 3.5%. On a monthly basis, the figure increased to 0.1% MoM from -0.2% in the previous month, and worse than expected of -0.2%.

Apart from the data, policymakers stated in the Summary of Opinions of the BoJ that the central bank supports maintaining ultra-low interest rates until robust domestic demand and higher wages replace cost-push factors as the primary drivers of price increases. That said, the monetary policy divergences between the easy-money policy by the BoJ and the tightening by the BoE lead to the weakening of the Japanese Yen (JPY) against the Pound Sterling (GBP).

Looking ahead, the UK preliminary Q2 Gross Domestic Product (GDP) will be released later in the day. The UK Industrial Production and Manufacturing production data will be due on Friday. In the absence of top-tier economic data releases from Japan later this week, the GBP price dynamic will be the main driver for the GBP/JPY cross.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 182.93 at the time of writing. Pair opened at 182.81 and is trading with a change of 0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 181.55, 50 SMA 180.47, 100 SMA @ 174.22 and 200 SMA @ 168.43.

The previous day high was 183.02 while the previous day low was 182.37. The daily 38.2% Fib levels comes at 182.77, expected to provide support. Similarly, the daily 61.8% fib level is at 182.62, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 182.44, 182.08, 181.79
• Pivot resistance is noted at 183.1, 183.39, 183.75

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