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  • The cross tumbles to new multi-day lows near 146.50.
  • UK PM May officially asked for short extension of Article 50.
  • UK CPI rose at an annualized 1.9% in February.

The increasing selling pressure around the Sterling is now forcing GBP/JPY to trade in fresh multi-day lows in the mid-146.00s.

GBP/JPY weaker on May’s letter

The cross has accelerated its weekly downside on Wednesday after UK PM Theresa May officially asked the EU for a short extension of Article 50 vs. market expectations of a longer delay.

In addition, PM May’s spokesman said the government expects the House of Commons to once again vote on May’s Brexit deal as soon as possible.

Earlier in the session, UK inflation figures gauged by the CPI showed consumer prices rose at a monthly 0.5% in February and 1.9% from a year earlier.

What to look for around GBP

The British Pound came under increasing selling pressure after PM Theresa May asked the EU for a short extension of Article 50, as opposed to expectations of a longer one. In addition, the third meaningful vote on May’s Brexit deal at the House of Commons has been postponed and now hinges on improvements from the original one.

GBP/JPY key levels

As the moment the cross is receding 0.63% at 146.82 facing the next support at 146.56 (low Mar.20) seconded by 144.70 (200-day SMA) and finally 143.72 (low Mar.11). On the other hand, a break above 148.87 (2019 high Mar.14) would expose 149.48 (monthly high Nov.8 2018) and then 149.71 (2019 high Sep.21 2018).