GBP/JPY advances to highs near 139.00

The bid tone around the British pound is now gathering extra steam, lifting GBP/JPY to daily highs near the 139.00 handle.

GBP/JPY bid after UK data

The cross met further upside pressure after UK’s GDP figures for the first quarter have matched expectations, up 0.4% QoQ and 2.0% on a yearly basis.

Further results saw the Current Account deficit widening more than estimated at £32.6 billion during the same period, while Business Investment contracted at an annual pace of 0.8% during the first three months of the year.

In the meantime, the cross is posting gains for the third session in a row, coming up from post-Brexit lows in the low-133.00s backed by dwindling concerns over Brexit and its consequent pick up in the risk-associated space.

GBP/JPY key levels

As the moment the cross is advancing 0.31% at 138.58 and a break above 140.00 (psychological level) would expose 145.34 (low Jun.16) and finally 149.23 (20-day sma). On the other hand, the next support lines up at 133.18 (post-Brexit low Jun.24) would expose 131.50 (monthly low Dec.2012) and then 125.63 (monthly low Nov.2012).