GBP/JPY Price Forecast – British Pound Breaks Down Again

The British pound initially tried to rally during the course of the trading session on Tuesday but gave back the gains as we continue to see a lot of negativity. At this point, it does appear that we are going to go much lower, perhaps reaching towards the ¥147.50 level, after that, we could see a market reaching down towards the ¥145 level, which is a large, round, psychologically significant figure. With that being said, I do think that it is only a matter of time before we continue this negativity, as there is a huge rush towards safety in general.

GBP/JPY Video 21.07.21

I do believe that this is going to pick up pace, and we are starting to see a lot of fear creep it is way into the market, and that of course will be here as well. Ultimately, this is a market that I think you can continue to fade short-term rallies, at least until we can take out the ¥150 level to the upside on a daily close. I do not see that happening easily, so I am looking for short-term signals that I can jump on, as I believe this market will continue to offer plenty of opportunities.

If we did somehow close above the ¥150 level on a daily close, then I might be interested in trying to get long, but that obviously would take a major “risk on” move. At this point, I just do not see that happening and I think things are getting much more precarious now that they were just 48 hours ago.

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