GBPJPY: Sterling Rallies with a Brexit Deal '95% Done'

Summary:

GBPJPY was 0.70% higher on Monday after officials said a Brexit deal was "95% done over the weekend and could see a further relief rally ahead.

GBPJPY was 0.70% higher on Monday after officials said a Brexit deal was “95% done over the weekend. GBPJPY was trading at 138.80 and could see a further relief rally if a deal is penned in the weeks ahead.

It has been suggested that the row over fisheries policy could continue into year-end as talks are “too slow” for a suitable agreement to be made in that timeframe. Whitehall officials are still confident that a deal can be secured by the end of November as there still needs to see approval by the U.K. government, MEPs, and the EU27 countries.

The pound has also been boosted by the release of stronger PMI manufacturing numbers from the U.K. this morning. The composite PMI reading came in at 47.4 after analysts had expected 42.5. Manufacturing was positive with a reading of 55.2 beating the 50.5 expected and securing a larger expansion.

GBPJPY Technical Outlook

GBPJPY has rallied from the support level at 137.80 to trade at 138.80. The pair is now taking aim at the 140.00 resistance lvel with 142.00 highs from September 1st being the key target. Bullish traders could go long today with a stop under the open. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.