Search ForexCrunch
  • The Sterling is on the rise on hope-fueled Brexit headlines.
  • Brexit news has been the main force behind the GBP this week, but Wednesday delivers UK GDP numbers.

The GBP/JPY is testing back towards the week’s highs, pushing into 148.80 as Cable bulls, emboldened by positive-swinging Brexit headlines, gear up for another run at the 150.00 major handle.

Brexit headlines have been the main driving force behind the GBP recently, taking the Pound for sometimes wild swings up and then down as broader markets ebb and flow between fear and hope as the narrative surrounding the UK’s exit from the European Union remains a tension-fueled, yet movement-light affair. Hard, definitive developments on the matter of Brexit remain cloudy and elusive, and proponents seeking a soft-Brexit continue to jump the gun on delivering hopeful outlines for plans for future agreements, as the field stays relatively empty of actual agreements.

According to early Wednesday headlines, the UK’s Prime Minister Theresa May could be set to try and find a way to bind the hands of hard-line Eurosceptics within her own party in an effort to force through a rough agreement with the EU before a critical November deadline, and bulls are jumping on the chance to bid up the Sterling at the mid-week inflection point, but today’s upcoming UK GDP reading could hinder more than help.

GBP/JPY levels to watch

With the pair bumping back towards the 150.00 major level, the key for bulls will be to finish pushing the Guppy back over the week’s peak at 149.50, but lower lows forming on the higher timeframes shows potential for the bears to regain control and force the GBP/JPY back down to recent bottoms just above the 147.00 barrier.