GBP/JPY falls to its lowest level since September 2017
At the same time, GBP/USD breaks below 1.2900 for the first time since 31 August last year - touching a low of 1.2894 on the day.
Despite the lack of Brexit news, the same fundamentals are still at play and that is helping to lead sterling lower on the day. It's all about pricing in the no-deal Brexit outcome as it would seem, but also further breakdown in technical levels are accelerating these moves.
GBP/USD is close to one-year lows and posting a succession of lower highs, lower lows. EUR/GBP is at nine-month highs closing in on 0.9000 and GBP/JPY is at eleven-month lows as sellers look to take out support from the 76.4 retracement level @ 143.39 and the previous year's low @ 143.20.
Everything is just working against sterling right now. As for GBP/JPY, there is minor support seen at 143.00 but given the momentum we're seeing today it's easy to see sellers brushing that aside when we get there.
And just like cable, there is very much a large air pocket thereafter with the next area of support that I can identify being close to 141.25-40 levels. That's a bit of a drop from where we are now.
Should that be any indication, more pain is yet to come for sterling. Ouchie.
