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  • Pound tumbles on May’s comments about Brexit.  
  • GBP/JPY drops 250 pips from daily highs, hits 3-day lows.

The GBP/JPY pair dropped dramatically during the last hours following a statement from UK PM Theresa May. “We are at an impasse”, said May regarding Brexit negotiations and demanded respect from the EU. Her comments included the “no deal” is better than a “bad deal”, a scenario that is starting to look like a real possibility.  

The pound tumbled with May’s comments. It is the worst performer, having the biggest slide in about a year. GBP/JPY reached earlier today at 149.67, the highest level since May 22, but then lost strength and pulled back. The slide accelerated then sending the pair to 146.97, more than 250 pips below the daily top.  

Later it trimmed losses but the recovery was limited by 147.50. As of writing was trading at 147.20/30, down 1.25% for the day but still up for the week.  

Technical levels  

To the downside, immediate support is seen around 147.00, followed by 146.25 (Sep 17 low) and 145.60 (Sep 12 high). On the flip side, resistance levels might now be located at 147.50, 148.00 and 148.30.