Although expectations remain heated over Boris Johnson becoming the new Prime Minister, the reality has the potential to weaken the Pound significantly.
Focusing on the technical picture, prices are trading towards the 1.2400 level. A breakdown below this point should open a path towards 1.2350.
GBPJPY hovers near 6 month low
GBPJPY could jump back into the drivers seat this week if fears of a no-deal Brexit reduce appetite for the British Pound.
This currency pair is firmly bearish on the daily charts and is likely to sink lower once a daily close under 134.00 is secured. With attraction towards Sterling fading by the day amid Brexit uncertainty, the GBPJPY could test 132.00 in the short to medium term.
EURGBP eyes 0.9000
A weaker Pound could send the EURGBP shooting back past 0.9000 today. A daily close above this point should open the doors towards 0.9060 this week.
GBPAUD trades around 1.7700
Renewed fears of a no-deal Brexit could send the GBPAUD below 1.7700 this week. Sustained weakness below this point should open the doors towards 1.7600 and 1.7500.
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