The British pound forms ominous candle for the weekThe British pound initially tried to rally during the week to test the ¥150 level. We rolled over at that point form a bit of a shooting star, and the shooting star of course is a negative sign. We are sitting just on top of the uptrend line that is offering major support. If we were to break down below the bottom of the uptrend line, we could drift quite a bit lower.
The British pound initially tried to rally during the week but turned around to form a shooting star that sitting on top of a major uptrend line. If we are to break down below the uptrend line I think that the market could probably go down to the ¥145 level, and then perhaps the ¥142.50 level. The alternate scenario of course is that we break above the ¥150 level, which would be a very bullish sign, but one of the things that I would point out is that the most recent high was lower, and the exhaustive candle for the week suggests to me that we are going to continue to show a bit of weakness. I believe that taking a trade a break above the ¥150 level, or perhaps a breakdown below the bottom of the range for the week is the way to go, and in the meantime it’s likely that we are going to see nothing short of noise than anything else.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
If we do break above the ¥150 level, then I think the ¥155 level would be targeted, but it’s likely that it will be a difficult trade to take. One thing that helps though is that the GBP/USD pair is showing signs of support at a major uptrend line, so that could give us a bit of bullish pressure here. Pay attention to both markets to lead the way.