What an exciting day it is. GBP/JPY just brought us more than 100 pips take profit. The sell-off triggered right after we shared a bearish trade setup on FX Leaders. The technical indicators were lining up for a bearish setup and the investors felt less confidence in the GBP over Brexit Votes.
Well, the sell-off was triggered over the latest remarks from the Geoffrey Cox, the Member of Parliament of the United Kingdom. He said:
- Theresa May’s new deal will ‘reduce the risk’ that Britain could be indefinitely trapped in the Customs Union.
- There is ‘no internationally lawful means of exiting’ the backstop if the EU is not acting in bad faith
- The legal risk remains unchanged through no such demonstrable failure of either party, but simply because of intractable differences.
At present, I will be looking for a strong buying level to capture quick retracement. Technically, 143.800 seems like a safe level to jump in buying today. But be careful, the risk still prevails as investors await Brexit Parliamentary vote.