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   “¢   Comments by Labour’s McDonnell prompt some aggressive selling around the British Pound.
   “¢   An offered tone surrounding the JPY extended some support and helped limit deeper losses.

The GBP/JPY cross faded an early European session spike and has now retreated over 100-pips from an intraday high level of 147.79.

The cross failed to capitalize on the better-than-expected headline  UK PMI print-led goodish uptick and drifted into the negative territory for the second consecutive session amid some intense selling around the British Pound.  

The latest leg of a sudden drop over the past couple of hours followed some negative Brexit headlines, wherein the UK Labour Party’s John McDonnell said that there were not many Labour MPs to back PM May’s Brexit deal.

McDonnell further announced that the Labour Party will vote against the no-deal Brexit and that the party is planning to back the amendment on the Brexit referendum, which eventually weighed heavily on the Sterling.  

The cross extended its retracement slide from 2-1/2 month tops, levels just above mid-148.00s touched on Friday, and dropped to a multi-day low level of 146.60, albeit the bearish pressure now seems to have abated.

The prevalent offered tone surrounding the Japanese Yen, despite cautious mood across equity markets, turned out to be the only factor extending support and helped limit deeper losses, at least for the time being.

It would now be interesting to see if the cross is able to find some buying at lower levels as the market participants now look forward to the BoE Governor Mark Carney’s testimony before the House of Lords Economic Affairs Committee.

Technical levels to watch


       Today Last Price:  146.79
       Today Daily change:  -39  pips
       Today Daily change %:  -0.26%
       Today Daily Open:  147.18
       Daily SMA20:  144.16
       Daily SMA50:  142.1
       Daily SMA100:  143.48
       Daily SMA200:  144.64
       Previous Daily High:  148.47
       Previous Daily Low:  147.08
       Previous Weekly High:  148.58
       Previous Weekly Low:  144.46
       Previous Monthly High:  148.28
       Previous Monthly Low:  141.01
       Daily Fibonacci 38.2%:  147.61
       Daily Fibonacci 61.8%:  147.94
       Daily Pivot Point S1:  146.68
       Daily Pivot Point S2:  146.19
       Daily Pivot Point S3:  145.3
       Daily Pivot Point R1:  148.07
       Daily Pivot Point R2:  148.96
       Daily Pivot Point R3:  149.45