- The GBP is exposing its soft underside to negative Brexit headlines once again.
- As the political situation remains disruptive, the GBP can expect to lose further ground to the safe-haven Yen.
The GBP/JPY is trading into 147.90 in early Tuesday trading as risk-off flows continue to hamper the Pound thanks to Brexit headlines beginning to swing back towards doom and gloom.
The Guppy recovered last week to the upper bound of recent consolidation as broader markets turned up hopes of a step forward in the Brexit process, but Monday reversed that sentiment, with the EU and the UK both waiting for the other side to make the next move. Tuesday markets also bring little usable UK data on the economic calendar, outside of a couple of public appearances by Bank of England (BoE) voting members.
The Pound suffered at the hands of short-selling to open up the new week, falling back away from the 150.00 major handle once again, and the pair will be setting up a firm consolidation zone as long as buyers keep the GBP/JPY above 147.00.
GBP/JPY levels to watch
With the Guppy at the bottom end of a building consolidation zone, the current action sees the pair slipping further below 148.00, and although buyers have worked hard to get the pair propped up and pushed into the attic, the ceiling from 150.00 continues to hold.
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