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The GBP/JPY cross extended its intraday rejection slide from the 148.00 handle and was now seen weakening further below the 147.00 round figure mark.

After yesterday’s subdued price-action, the cross met with some fresh supply and now seems all set to extend last week’s retracement slide from the 149.00 neighborhood, or four-month tops amid mounting concerns over the future of Brexit.

In the latest development, the UK PM Theresa May confirmed to have requested a short Article 50 extension and said that she is not willing to delay Brexit beyond June 30 – contrary to the market expectations for a long delay and exerted some fresh pressure on the British Pound.

The sentiment deteriorated further in reaction to European Commission President Jean-Claude Juncker’s comments, saying that the withdrawal process has to be completed before May 23 or the UK must hold European Parliament elections.  

Meanwhile, the latest leg of a sudden fall in the last hour or so could further be attributed to some technical selling on a sustained break below weekly lows support, around the 147.00 mark. Hence, a follow-through weakness, back towards testing the 146.00 handle, now looks a distinct possibility.

Technical levels to watch

The cross now seems to accelerate the slide towards 146.55 intermediate support before eventually falling to challenge the 146.00 handle. On the flip side, the 147.75 region, closely followed by the 148.00 handle now seems to have emerged as an immediate resistance, above which a bout of short-covering could lift the cross back towards multi-month tops, around the 148.85-90 region.