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GBPJPY Surges Above 198.3 Amid UK Economic Concerns

FxNews—In September 2024, consumer credit in the U.K. increased by £1.2 billion, marking the smallest rise in three months. This figure dropped slightly from the revised amount of £1.4 billion in August and did not meet the expected £1.3 billion.

United Kingdom Consumer Credit Chart
United Kingdom Consumer Credit Chart

September 2024 Sees Dip in Credit Card and Loan Use

Credit card borrowing decreased to £0.4 billion in September, down from £0.5 billion the previous month. Similarly, lending through other consumer finance options like car dealership finance and personal loans declined to £0.8 billion from £0.9 billion.

The overall annual growth rate for consumer credit decreased slightly to 7.5% in September from 7.7% in August. Meanwhile, the growth rate for credit card borrowing decreased to 9.5% from 10%, although the growth rate for other types of consumer credit stayed the same at 6.6%.

GBPJPY Technical Analysis – 20-October-2024

GBPJPY Technical Analysis - 20-October-2024
GBPJPY Technical Analysis – 20-October-2024

Despite the bad economic news in the U.K., the GBP/JPY strengthened amid weak Japanese yen. Today, the price bounced from the 198.3 support (October 23) and resumed its bullish trajectory. As of this writing, the pair trades at approximately 199.1, poised to break yesterday’s ceiling.

GBPJPY Price Forecast – 20-October-2024

The primary trend is bullish because the price is above the Ichimoku Cloud. From a technical standpoint, the uptrend will likely resume as long as GBP/JPY is above the 198.3 immediate support. In this scenario, the next bullish target could be the May 29 high at 200.8.

Conversely, a new consolidation phase could begin if the price dips below the 198.3 mark. In this scenario, the Japanese yen will likely erase some recent losses by aiming toward the 196.0 critical support, the October 18 high.

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