GBP/JPY below the 148.00 handle

• The British pound is weakening amid a string of poor key macroeconomic data, BoE’s dovish comments, and political issues.
• Expectations of a Bank of England (BoE) rate hike were pushed forward to November.

The GBP/JPY is trading at around 147.92 up 0.18% on data-light Monday’s trading.

The GBP/JPY is retreating from the highs made earlier in the day at 148.26 and is now consolidating in the 147.90 region. The GBP is seen as a weak currency as recent disappointing key macroeconomic data and dovish comments from Bank of England´s officials have pushed a BoE rate hike´s expectations to November. 

This Thursday, the BoE’s monetary policy meeting minutes, the quarterly Inflation Report and the rate decision will closely be scrutinized by investors. “Expectations of a May hike have completely evaporated and OIS are only pricing roughly 20bpts of tightening by November.” says analysts at Scotiabank. 

The British pound was further weakened by Brexit-related issues and the customs dilemma. Brexiters wants to abandon all kind of partnerships with the EU as they argue that it would keep the United Kingdom tied to the European Union rules.   

GBP/JPY 4-hour charts

The main trend is bearish and supports are seen at 147.50 psychological level and at 147.06 while resistances are seen at 148.26 (Monday’s high) and at the 149.00 handle.