The British Pound has lost ground against the Euro after the Bank of England (BoE) announced this Tuesday that its Chief Economist Andy Haldane would be leaving the bank later in the year.
Haldane is a notable hawk among the BoE’s Monetary Policy Committee and has consistently ramped up the UK’s economic recovery prospects amid the coronavirus pandemic. His exit is expected to produce a noticeable tilt towards dovishness by the BoE.
The GBP/JPY pair has had an overall bearish tone for most of the trading session and is currently down 0.18% after giving up the day’s earlier gains.
Technical Levels to Watch
Despite Tuesday’s decline, the GBP/JPY has managed to hold ground at the 149.63 support level (8 March and 9 April lows). However, a decline on the pair puts this support level at risk, with the pathway towards 148.73 being blown wide open if the support is eventually taken out. Additional support is seen at the 2 March low of 148.062.
On the other hand, a bounce off the present support level allows bulls to attempt to reclaim the 151.042 resistance barrier, with the supply zone at 152.11/152.367 coming in closely as additional resistance. The 2021 high at 153.397 is the only stumbling block between record-seeking buyers and new highs for the year, which would confirm a continuation of the uptrend.
Don’t miss a beat! Follow us on Telegram and Twitter.
GBP/JPY Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.