- Guppy traders struggling to maintain bullish momentum as the GPB remains exposed to Brexit shocks.
- Broader market sentiment remains on the fearful side, keeping the JPY bid against riskier assets.
The GBP/JPY is trading into the 144.00 key technical level heading into Thursday’s trading as the pair looks to firm up from near-term lows, with the Sterling dipping to 142.75 late last week.
Brexit headlines continue to undermine the Pound through the broader markets, limiting the GBP’s ability to stage a full bullish correction, and with the Pacific-Asia region seeing trade war tensions remaining close to the surface, investors are keeping one foot in the safe-haven Yen.
Thursday is going to be a rough showing for the GBP, with the Bank of England’s (BoE) latest Interest Rate Decision and Monetary Policy Summary; the BoE is widely expected to remain on-hold on interest rates as potential economic fallout from a no-deal Brexit looms overhead, and the BoE’s Meeting Minutes could see the Sterling take another header if the BoE’s internal dialogue shifts too far into the dovish camp.
GBP/JPY levels to watch
The Guppy clipped back over the 145.00 handle in Wednesday’s action, but the pair couldn’t sustain a move higher and the GBP/JPY is back into 144.00 with the current floor at last week’s bottom at 142.75, and the Guppy remains firmly bearish, wallowing far below last week’s top at 147.60.
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