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 0.5%. Although the pace was slightly slower than 0.7% recorded in the previous quarter but surpassed consensus estimates pointing to a 0.4% growth. 

The disappointment, however, came from a slightly lower-than-expected yearly growth rate, coming-in at 2.1% as compared to 2.2% expected, which was still better-than 1.9% reported in the previous quarter. 

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Mixed GDP figures did little to the already prevalent positive sentiment surrounding the British Pound, led by last week's surprise announcement by the UK PM Theresa May. 

Meanwhile, an offered tone surrounding the Japanese Yen further collaborated to the pair's bid tone near its highest level since late-Jan. 

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.