For the second day in a row, the GBP/JPY pair is trading in a limited range between the 145.80 and the 146.28 levels awaiting any new news regarding the Brexit's fate. The continuation of the bullish trend of the pair will depend on any positive developments of the Brexit. Britain's job market remains strong despite the unknown fate of the country's exit from the EU. The pound did not react very much with the EU agreeing to postpone Brexit to the end of October instead of the date of the previous postponement, because Britain's internal political division may hinder May's efforts to get the Brexit deal approved to ensure that the country does not leave the union without an agreement. A no-deal Brexit Will be catastrophic for the British economy and the pound sterling. The pair's recent gains supported by risk aversion and the abandonment of safe havens led by the Japanese yen amid growing optimism that the US-China deal is close to ending their fierce trade war.
Britain's economic growth slowed down, while the manufacturing sector rebounded. So far, May government has not been able to obtain parliamentary approval for the Brexit deal. For the third time in a row, the British House of Commons rejected the Brexit deal even after it was amended, adding to pressure on May and her government. British gross domestic product (GDP), unchanged as expected. In contrast, the Japanese TANKAN survey data confirm the Japanese economy's vulnerability to the US-China global trade war.
Losses of GBP didn’t stop as Brexit developments are many, successive and contradictory. It was normal for the pound to depreciate against other major currencies.
Technically: GBP/JPY correction and stability above 140.00 psychological resistance will support the continuation of the pair's upward trend and have tested all the levels we have anticipated in the previous analysis. Currently, the nearest resistance areas are 146.50, 147.80 and 150.00 respectively. On the downside, the nearest support levels are 145.45, 144.20 and 143.00 respectively. It remains best to sell the pair remains at every rebound as the Pound’s future remains uncertain with continuation of negotiations to push Britain out of the European Union.
In today's economic data: The pair will watch the release of UK retail sales. The pair will be in a state of anticipation and waiting for Brexit’s negotiations. It will also focus on the uptake of safe havens.