GBP/JPY holds near 3-month highs after UK GDP

The GBP/JPY cross continued building on to its strong bullish momentum and held closer to near three-month tops, around the 144.00 handle, following the UK GDP print.

The initial UK GDP estimate for the first quarter of 2017 showed a q-o-q growth of 0.3%. The growth rate was slower than 0.7% recorded in the previous quarter and was also lower than consensus estimates pointing to a 0.4% growth. 

Adding to the disappointment, yearly growth rate came-in at 2.1% as compared to 2.2% expected, but was still better-than 1.9% reported in the previous quarter. 

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Despite of the slightly lower-than-expected GDP figures, the cross held stable just below the 144.00 handle, led by the prevalent positive sentiment surrounding the British Pound in wake of last week's surprise announcement by the UK PM Theresa May. 

Moreover, an offered tone surrounding the Japanese Yen further collaborated to the pair's bid tone near its highest level since late-Jan., at least for the time being.

Technical levels to watch

Immediate resistance is pegged near 144.40 level, which if cleared is likely to accelerate the up-move further towards the key 145.00 psychological mark en-route 145.75 hurdle. On the downside, retracement below 143.35-30 immediate support could get extended the downslide even below 143.00 round figure mark towards its next important support near 142.65-60 zone.