The GBPJPY cross fell nearly 1% in Asian / European trading on Friday, extending steep downtrend from 3 May high at 146.50.
Fresh bearish acceleration was sparked by announcement on US tariffs on imports from Mexico that triggered strong demand for safe-haven assets and boosted yen.
On the other side, pound remains under strong pressure on rising fears for no-deal Brexit.
The cross hit the lowest levels since early Jan (136.72 so far) after Thursday’s close below important Fibo support at 138.21 (61.8% of 131.62/148.87 ascend) generated initial bearish signal, which was boosted by the latest news of spread of trade war.
Bears can extend to 135.69 (Fibo 76.4%) as there are no obstacles en-route and sentiment remains firmly bearish.
The pair is on track for the fourth straight bearish week and also about to register the biggest monthly fall since June 2016 (when sterling collapsed after Britain voted for Brexit) that adds to strong bearish outlook.
Oversold daily studies warn of corrective action, but lacking any firmer signal for now.
Res: 137.37, 137.75, 138.21, 138.83
Sup: 136.72, 136.00, 135.69, 135.00
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