GBP/JPY clings to recovery gains, around 148.00 handle

   •  Fading safe-haven demand helps snap the recent losing streak.
   •  All eyes remain glued to BoE’s Super Thursday this week. 

The GBP/JPY cross built on its modest recovery bounce from 1-1/2 month lows and traded with a positive bias through the early European session.

The cross snapped four consecutive days of losing streak and has also recovered a major part of Friday's downslide to the lowest level since March 19. An offered tone around the Japanese Yen, amid fading safe-haven demand, was seen as one of the key factors behind the pair's goodish rebound at the start of a new trading week.

Meanwhile, a subdued GBP price action on the back of a bank holiday in the UK, in observance of May Day, did little to influence the momentum, with the JPY price-dynamics acting an exclusive driver of the pair's recovery to the 148.00 handle.

It would now be interesting to see if the cross is able to build on the up-move or the attempted recovery is seen as an opportunity to initiate fresh short positions ahead of this week's big event risk, the keenly awaited BoE's Super Thursday. 

Technical levels to watch

On a sustained move beyond the 148.00 mark, leading to a subsequent move above 148.20 resistance, the cross seems to extend the recovery further towards retesting the very important 200-day SMA support turned resistance near the 149.00-149.10 region.

On the flip side, mid-147.00s now seems to protect the immediate downside and is followed by a strong support near the 147.00 handle, which if broken might turn the cross vulnerable to extend its downfall further towards the 146.65-60 area.