GBP/JPY flirting with session lows, around 141.70 region

Brexit uncertainties exerted some heavy pressure on the British pound.
GBP/JPY erased the gains led by BoE’s hawkish pause last Thursday.

Haresh Menghani FXStreet

The GBP/JPY cross continued losing ground through the mid-European session and is currently placed near the lower end of its daily trading range, around the 141.70-65 region.

The cross came under some aggressive selling pressure on the first day of a new trading week and has now reversed its gains recorded over the past two trading sessions – led by the Bank of England's hawkish decision to leave rates unchanged at 0.75%.

GBP weighed down by renewed Brexit uncertainties

Renewed uncertainty over the UK's future trade relationship with the European Union exerted some fresh downward pressure on the British pound, with bulls shrugging off Monday's stronger-than-expected final UK Manufacturing PMI print.

The market concerns were further fueled by the EU chief Brexit negotiator Michel Barnier and the UK Prime Minister Boris Johnson's diverging comments on the UK-EU trade, which further dented the already weaker sentiment surrounding the cross.

Meanwhile, fading safe-haven demand for the Japanese yen, amid a goodish rebound in the global risk sentiment, also did little lend any support or stall the pair's sharp intraday slide – further below the 142.00 round-figure mark.

It will now be interesting to see if the pair is able to find any support at lower levels or continues with its downward momentum, which would mark a near-term bearish breakdown and pave the way for a further depreciating move.

Technical levels to watch

GBP/JPY

Overview
Today last price	141.74
Today Daily Change	-1.35
Today Daily Change %	-0.94
Today daily open	143.09

Trends
Daily SMA20	143
Daily SMA50	142.76
Daily SMA100	140.02
Daily SMA200	137.69

Levels
Previous Daily High	143.29
Previous Daily Low	142.47
Previous Weekly High	143.29
Previous Weekly Low	141.26
Previous Monthly High	144.61
Previous Monthly Low	140.83
Daily Fibonacci 38.2%	142.97
Daily Fibonacci 61.8%	142.78
Daily Pivot Point S1	142.61
Daily Pivot Point S2	142.13
Daily Pivot Point S3	141.79
Daily Pivot Point R1	143.43
Daily Pivot Point R2	143.77
Daily Pivot Point R3	144.25

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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