GBP/JPY gaps into familiar low, recovers above 147.00

• A quiet Monday sees Brexit headlines take front and center for the early week.
• A snap election in the UK could be incoming as PM May looks to shore up her political base.

The Guppy saw a bearish open to the new week, dropping into 146.98 in a week opening gap after weekend headlines over Brexit knocked investor confidence back mildly to kick off a quiet Monday session.

Brexit sees a new development

After the UK Prime Minister Theresa May's latest Brexit proposal, known as the Chequers plan, received a hard no from European Union leaders in Brussels, PM May's home team in Britain is preparing contingency plans to shore up support for the PM as hard-line Brexiteers within the UK's own parliament circles the prime minister's wagons, looking to wrestle control over trade talks away from the PM's office and place it in the hands of hard-headed Eurosceptics who would be all too happy to allow Britain to undergo a hard Brexit with no trade or border deals with the EU in place.

PM May's office is looking to head off a Tory challenge to current negotiations, and a snap election could be called for November in an attempt to head off any pro-leavers looking to take a shot at the PM's seat with a no-confidence vote, and the prospects of a sudden election call for the UK is seeing GBP bidders take moment to pause.

Monday is an alarmingly quiet showing for the GBP/JPY pairing, with Japanese markets off for yet another long weekend, and a lack of notable data on the economic calendar for Britain to kick off the new trading week, and traders will be keeping their eyes on political headlines for the early week.

GBP/JPY levels to watch

Te Guppy knocked back sharply last Friday, slipping back down from the 150.00 major handle to settle back in the neighborhood of the 200-day EMA, which could go on to support another run at highs as long as buyers manage to keep their fingers on the 147.00 key figure.