- Brexit uncertainties exerted some heavy pressure on the British pound.
- GBP/JPY erased the gains led by BoE’s hawkish pause last Thursday.
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
|Today last price||141.74|
|Today Daily Change||-1.35|
|Today Daily Change %||-0.94|
|Today daily open||143.09|
|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|
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.