The GBP/JPY cross maintained its bid tone through the early European session and was last seen hovering around the 154.70-75 region, just below the multi-year tops set earlier this Tuesday. The cross gained traction for the third consecutive session and climbed further beyond the 154.40-45 resistance zone, confirming a bullish breakout through a one-week-old trading range. This marked the third consecutive day of a positive move – also the fourth in the previous five – and was sponsored by a combination of factors.

The Japanese yen was weighed down by concerns that a fresh COVID-19 outbreak could hinder fragile economic recovery. This was reaffirmed by a downbeat Q1 GDP report, showing that the economy contracted 1.3% during the January-March period and 5.1% YoY. Apart from this, a positive risk tone further acted as a headwind for the safe-haven JPY. From a technical perspective, Tuesday's positive move to the highest level since January 2018 has set the stage for an extension of the ongoing positive move. Hence, a subsequent strength beyond the key 155.00 psychological mark, towards testing the next major hurdle near the 155.55-60 region, now looks a distinct possibility.