GBPJPY Looks for Breakout as Brexit Deal Inches Closer

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Written By: Kevin George

Dec 17, 2020, 08:40 GMT 08:40

FTSE 100

Summary:

GBPJPY was trading higher on Thursday as Brexit talks come down to fishing rights. The pair is also benefiting from a continued rise in stock markets.

GBPJPY was trading higher on Thursday as Brexit talks come down to fishing rights. The pair was trading at 140.00 and was also benefiting from a continued rise in stock markets which is lowering the desire for safe havens like the Yen.

The Bank of England announces its latest interest rate and monetary policy today. The BoE is expected to hold steady on rates and stimulus until the Brexit situation is secured. The bank’s bond-buying was program is currently £895 billion, which was increased by £150 billion last month.

The U.K. and the EU are looking to resolve Brexit talks with fishing rights being the last key block to an agreement. The U.K. government goes into a recess on Thursday, but P.M. Boris Johnson has said they could be called back if a deal needs to be approved.

GBPJPY Technical Outlook

The GBPJPY is trading at 140 and a break above this level could see the pair move to the resistance at 142.70. Support is at 138.00 with the 50-day moving average if we see a No Deal outcome. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.

GBPJPY Daily Chart

Written By: Kevin George

Kevin George has over twelve years' experience in financial markets trading, which included stints in London and New York, trading equities and currencies. He has also traded in commodities, equities, futures and options. He has extensive technical-experience and combines this with a fundamental overview. He has published for SeekingAlpha, where he runs his own subscriber newsletter and graduated with an MSc in finance in 2017.