In an earlier post, we highlighted the possibility of GBPJPY rising on a Brexit breakthrough. But that view did not materialise.
With risk appetite collapsing today, investors stampeded into safe haven currencies such as USD, CHF and JPY.
Unsurprisingly, this caused a downward dynamic in GBPJPY, which slumped by more than 200bps at pixel time. Note this is the biggest first downward dynamic since early February.
Moreover, the level at 146.4 is a multi-week low, which will exert enormous pressure on March lows – and risks a downside breakout.
For GBPCHF, the trend is firmly bearish although we note its oversold is momentum.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.