GBP/JPY Price Forecast – British pound collapses again on Thursday

The British pound has broken down against the Japanese yen yet again, as it looks like we are heading towards the ¥146 level, and of course the uptrend line that sits just above there. Because of this, I think it is only a matter of time before buyers may step in to pick up a bit of value, but there are so many concerns around the United Kingdom right now that I would not be willing to put serious money to it. I would need to see a daily reversal candle to turn things around in order to start putting money to work.

Poor retail sales added yet another issue against the British pound, and it looks as if we are going to continue to see a very heavy sterling in the short term. If we break down below the ¥146 level, I think it is only a matter of time before we go down to the ¥145 level. That’s an area that would of course have a bit of psychological importance attached to it, but I also recognize that the market will look at it as an area that is simply just that, another level. At this point, I think you will probably continue to see sellers jump into this market on rallies and the Thursday session is starting to show up as a rather brutal one. Quite frankly, the British pound need some type of good news involving Teresa May and the Brexit before turning around and rallying.

GBP/JPY  Video 20.07.18