GBP/JPY Price Forecast – British pound breaks down again

With the clowns running things in London, it’s no surprise that the British pound can hang onto gains. With this being the case, it’s very difficult to imagine a scenario where we bounce, at least in the short term and it now looks as if we are getting ready to test the next major support level.
Christopher Lewis
GBP/JPY daily chart, May 24, 2019

The British pound broke lower during the trading session on Thursday as we continue to see a lot of drama involving whether or not Theresa May will stay or go, and of course the EU parliamentary elections going on in the United Kingdom makes this a bit of a sideshow as well. With this breakdown, it looks very likely that we are going to go to the next major support level, which I have defined as the ¥138 level at the 61.8% Fibonacci retracement level. Ultimately, if we do that it’s likely that the market will completely unwind at that point and probably collapse.

GBP/JPY  Video 24.05.19

On that breakdown, it would not surprise me at all to see this market go to the ¥135 level, possibly even lower. However, if the ¥138 level holds then we could get a bounce back towards the ¥140 level. We need some type of good news out of Great Britain for that to happen though, and quite frankly it’s difficult to imagine that being the case right now considering how much drama and flat out noise continues to be a major issue at this point. In the short term, it certainly looks as if we go lower so obviously selling is about the only thing you can do over the next day or so. That being said, it’s only going to take an announcement or a tweet or something else to turn this right back around.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.