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  • British Pound picked up a strong bid an hour ago after the news hit the wires that UK’s PM Theresa May has sealed a deal with the EU on financial services.
  • GBP/JPY jumped 100 pips in the last 60 minutes and is currently trading above the 200-hour EMA.
  •  The pair could test 145.42 (38.2% Fib R of Sept. 21 high/Oct. 26 low).

Currently, the GBP/JPY is trading at a session high of 145.10, having clocked a low of 144.02 earlier today.

The cross bounced off the 50-hour exponential moving average (EMA) an hour ago after reports hit the wires that UK’s Prime Minister Theresa May has sealed a deal with the European Union that would provide UK financial services companies continued access to European markets  after Brexit.

These reports come a day after the UK’s Brexit secretary Dominic Raab, in a letter the Commons Brexit committee published yesterday, struck an optimistic tone by stating that a wider deal could be in the offing within three weeks.

As a result, the GBP/JPY could remain solid bid for the rest of the day. The cross has cleared the 200-hour EMA a few minutes before press time and is now looking north toward 145.42 )(38.2% Fib R of Sept. 21 high/Oct.26 high).

The bullish break above the 200-hour EMA may fail if the equity markets turn red, pushing the JPY higher across the board.

GBP/JPY Technical Levels

GBP/JPY

Overview:
       Last Price:  145.09
       Daily change:  91  pips
       Daily change:  0.631%
       Daily Open:  144.18
Trends:
       Daily SMA20:  146.53
       Daily SMA50:  146.13
       Daily SMA100:  145.68
       Daily SMA200:  147.62
Levels:
       Daily High:  145.15
       Daily Low:  143.62
       Weekly High:  147.59
       Weekly Low:  142.78
       Monthly High:  149.52
       Monthly Low:  142.78
       Daily Fibonacci 38.2%:  144.56
       Daily Fibonacci 61.8%:  144.2
       Daily Pivot Point S1:  143.48
       Daily Pivot Point S2:  142.79
       Daily Pivot Point S3:  141.96
       Daily Pivot Point R1:  145.01
       Daily Pivot Point R2:  145.84
       Daily Pivot Point R3:  146.53