• The overnight Brexit optimism continues to underpin the British Pound.
  • The reaction to Wednesday’s softer UK PMI turns out to be short-lived.
  • Fading safe-haven demand weighed on the JPY and remains supportive.

The GBP/JPY cross quickly reversed the UK services PMI-led dip and climbed to fresh weekly tops - around the 129.30 region in the last hour.
 
The cross gained strong follow-through traction through the early European session on Wednesday and built on the previous session's solid recovery of over 130-pips - supported by the fact that the UK House of Commons passed a motion aimed at taking control of the daily agenda from the government.

Brexit optimism offset softer UK data

The cross did witness an intraday pullback following the disappointing release of UK services PMI, which fell to 50.6 in August from the previous month's final reading of 51.4, though the downtick turned out to be short-lived amid receding fears over Britain's exit from the EU without a deal.
 
It is worth mentioning that the latest UK political development is now expected to lead to a vote forcing the government to request another three-month extension to the Brexit deadline, though looming risk of a snap election in the UK might keep a lid on any strong follow-through positive momentum.
 
Meanwhile, a fresh wave of global risk-on trade - as depicted by a strong rally in equity markets - was seen weighing on the Japanese Yen's perceived safe-haven status and remained supportive of the pair's ongoing recovery further beyond the 129.00 round figure mark.

Technical levels to watch

GBP/JPY

Overview
Today last price 129.16
Today Daily Change 1.14
Today Daily Change % 0.89
Today daily open 128.02
 
Trends
Daily SMA20 128.9
Daily SMA50 132.19
Daily SMA100 136.36
Daily SMA200 139.94
Levels
Previous Daily High 128.26
Previous Daily Low 126.67
Previous Weekly High 130.39
Previous Weekly Low 128.21
Previous Monthly High 132.56
Previous Monthly Low 126.54
Daily Fibonacci 38.2% 127.28
Daily Fibonacci 61.8% 127.65
Daily Pivot Point S1 127.04
Daily Pivot Point S2 126.07
Daily Pivot Point S3 125.46
Daily Pivot Point R1 128.63
Daily Pivot Point R2 129.24
Daily Pivot Point R3 130.21

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures