#GBPJPY @ 163.738 Pound outperforms across the board on Monday, benefit from Brexit deal. (Pivot Orderbook analysis)

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• Pound outperforms across the board on Monday, benefit from Brexit deal.
• UK and European Union reach a new deal to resolve the Northern Ireland trade issue.
• GBP/JPY rises above the 200-day Simple Moving Average.

The pair currently trades last at 163.738.

The previous day high was 163.12 while the previous day low was 161.22. The daily 38.2% Fib levels comes at 162.4, expected to provide support. Similarly, the daily 61.8% fib level is at 161.95, expected to provide support.

The GBP/JPY is rising sharply on Monday boosted by a stronger Pound across the board amid the Brexit agreement. The cross rose to 163.98, the highest level since December 20.

UK Prime Minister Rishi Sunak is announcing a “decisive breakthrough in Brexit talks”. The new deal, according to Sunak implicates changes to the Northern Ireland protocol.

Sunak and European Commission President Ursula von der Leyen are offering a joint press conference, explaining the new deal.

Ahead of the announcement, the Pound was already trading in positive ground across the board. GBP/USD hit 1.2050 while EUR/GBP tested levels under 0.8800.

The GBP/JPY is up by around a hundred pips. The pair peaked at 163.98 and then pulled back modestly as equity prices in Wall Street move off highs. Price is back above the 200-day Simple Moving Average. A consolidation above 164.00 would open the doors for a test of the next resistance area seen at 164.70.

The bias in the short-term point to the upside. A confirmation under 161.70 would change the outlook to neutral/bearish.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 163.82 at the time of writing. Pair opened at 162.92 and is trading with a change of 0.55 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 160.44, 50 SMA 160.09, 100 SMA @ 163.57 and 200 SMA @ 163.35.

The previous day high was 163.12 while the previous day low was 161.22. The daily 38.2% Fib levels comes at 162.4, expected to provide support. Similarly, the daily 61.8% fib level is at 161.95, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 161.72, 160.52, 159.82
• Pivot resistance is noted at 163.62, 164.33, 165.53

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