GBP/JPY clocks 4-day high

GBP/JPY clocked a 4-day high of 141.93 in Asia as the Yen remained flat lined against the greenback, while the British Pound strengthened. At the time of writing, cross was up 0.25% at 141.90 levels. 

Golden cross on the 1-hour chart

On the 1-hour chart, the bullish crossover between the 50-MA and 100-MA has been confirmed. The chart also shows a rising bottom pattern, thus the spot could extend gains, especially if the European equity markets begin the week on a positive note. 

UK’s Brexit Secretary David Davis, while talking to BBC’s Andrew Marr on Sunday, said that he is pretty sure that UK will secure a good deal. Meanwhile, the latest Lloyds Survey showed the business confidence rose to 18-month high. The British Pound may find bids in response to the positive comments from Davis and on the back of upbeat survey data. 

GBP/JPY Technical Levels

The daily chart shows a rising bottom formation. A break above 142.00 (zero figure) would open doors for 142.54 (June 20 high) and 143.05 (50-DMA). On the other hand, a breach of support at 141.48 (support on 1-hour chart) would expose 141.11 (1-hour 200-MA) and 140.59 (June 20 low).