GBP/JPY extends the break above 50-DMA, UK Q4 GDP eyed

GBP/JPY reversed a dip below 143 handle and now extends the rebound above the mid-point of the last, as the GBP bulls cheer some clarity on Brexit heading into the UK Q4 GDP release. 

Focus on the UK GDP data

The British Pound is heading into the preliminary UK growth release on a stronger footing, with recovery bolstered by reports that the UK PM May will publish the bill to trigger Brexit in a first reading, which will help provide further clarity ahead of the Article 50 trigger.

Meanwhile, the UK data due for release later today is expected to the UK economy to have slowed its pace of expansion in the fourth quarter of 2016, predicted at 0.5% versus 0.6% previous.

On the JPY-side, a weaker yen versus the greenback amid risk-on sentiment also collaborated to the upbeat momentum seen behind the cross.

GBP/JPY Technical Levels

A break above 144 (round figure) would open the doors to 144.50 (psychological level) and then to 144.91 (daily R2). On the lower side, a breach of 142.89 (daily pivot) could yield a sell-off to 142.27 (5-DMA). A violation there would expose strong support at 142 (daily S1).