GBP/JPY Technical Analysis: Monday's bear gap closing into 147.50

• The last twenty-fours of trading activity, spanning last Friday and the early Monday sessions, sees the GBP/JPY slipping steadily lower, with steady up-moves getting knocked to the downside in rapid, intraday sell-offs as market confidence shakes out at regular intervals, fueled largely by market hopes of Brexit deals failing to mesh well with reality.

GBP/JPY M5

• In recent weeks, the Guppy enjoyed a rock-steady buildup on a fresh round of Brexit hopes, but reality has come crashing back down for the Sterling, and the GBP/JPY has seen an inversion of the 50- and 200-period near-term moving averages, suggesting that further declines are waiting in the wings.

GBP/JPY M30

• Going back over the past month, the GBP/JPY has reached a critical inflection point: a bullish rebound off of the key 200-hour moving average from the 147.00 handle looks to be in the works, fueled by a confluence of the key 38.2% Fibo retracement level, but sellers will be looking to reload their positions on a continued move lower if the Guppy can't maintain long-side momentum above 149.50.

GBP/JPY H1