GBP/JPY Midday Technical Analysis for October 31

The British pound has rallied again during the trading session on Wednesday but has ran into a bit of resistance. Between the ¥144.50 level in the ¥145 level, I anticipate that we should see a significant amount of resistance. We have formed an hourly shooting star, and although not the greatest signal it is showing just how difficult it’s going to be to break above this area. With that in mind, I believe that the market continues to find sellers above, and I think a break out he is asking for a lot if we don’t have some type of good scenario involving the Brexit, the reality of which is probably a while away. Because of that, I think we continue to sell this pair on rallies, but I would stand up and take notice above the ¥145 level as it would show a significant turnaround.

GBP/JPY Midday Video 31.10.18

On the downside, I believe that we are probably looking towards the ¥143.50 level again, unless something changes fundamentally. We have seen a significant bounce on stock market indices around the world, which of course helps but at the end of the day this is about the Brexit more than anything else. Risk appetite is probably receiving a little bit of a short-term bounce from here, but ultimately I believe that we are looking at a scenario where people will continue to sell the rips in most risk appetite related markets, this one being no different.