GBP/JPY volatile on Brexit talks: now jumps a hundred pips and hits weekly highs

The pound jumped following a report that mentioned an offer from the European Union to the United Kingdom on a two-year transition period. Before that, GBP was the worst performer in the market and in a few minutes erased all losses. 

EU’s Barnier could offer UK 2-year transition stay in EU market - Handelsblatt

GBP/JPY bottomed earlier at 147.26, the lowest since Monday, after Michel Barnier, EU's chief Brexit negotiator said that talks regarding the “divorce bill” reached a “deadlock”. The pair then bounced modesty to the upside and during the last hour gained more than a hundred pips, on the report about the EU offer. It even reached a fresh weekly high at 149.08. 

The pair so far is being unable to consolidate ton top of 149.00 but the intraday tone has changed dramatically, again, now favoring the upside. Volatility remains elevated on Pound’s crosses amid Brexit talks. With a round of negotiations on its ways, the currency is likely to be exposed to comments from officials, rumors, and speculations. 

UK ForMin Johnson: Very optimistic about Brexit talks and the progress that can be made

Levels to watch 

To the upside, resistance levels might be located at 149.00/10 (Oct 12 high / Oct 4 low), 149.45 (Oct 5 high), 149.95 (Oct 4 high / Sep 26 low). On the flip side, support could be seen at 147.80 (Oct 11 low), followed by 147.25 (daily low) and 146.90 (Oct 9 low). 
 

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 securities. 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 Forex 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.