British pound slices through uptrend line against Japanese yen

The British pound fell through a major uptrend line on the weekly chart over the past week, which of course is a very negative sign. The large red candle course shows signs of weakness as well, and it looks likely that we will make a challenge against the ¥145 level. If we can break down below there, then I think that the market probably drops down a couple of hundred yen. Rallies at this point should continue to be sold off, as the previous uptrend line should now offer a bit of resistance, and most certainly the ¥150 level will. I think at this point, the market has shown what it’s ready to do, because not only have we broken through the uptrend line, but we have recently made a “lower high”, which is the first sign of the market rolling over.

I think the British pound will continue to fall against the US dollar as well, which is a bit of a benchmark for this currency. I think that if we get some type of selloff in the stock markets, that will only exacerbate this move, and put a lot of momentum into it. At this point, I don’t have any interest in buying quite yet, because I see far too many resistance levels above to be comfortable holding onto a position. It appears that the ¥150 level is going to be a major turning point in the attitude of this market.

GBP/USD Video 28.05.18