GBP/JPY Price Forecast – British pound continue sideways grind

The British pound rallied a bit during the trading session on Wednesday, but also pulled back. Now that we are looking at the ¥130 level, the question then becomes whether or not we can break above there. If we do, obviously that means a lot and if we don’t, that means confirmation.
Christopher Lewis
GBP/JPY daily chart, August 22, 2019

The British pound has gone back and forth during the trading session on Wednesday, as we continue to bounce around the ¥130 level. That’s an area that had previously been resistance, so the fact that we couldn’t break through there makes quite a bit of sense. If we did break above that level though, then I think the market probably goes looking towards the 132 young level where the 50 day EMA is starting to drive through there. That being said, there’s also the negative situation, which makes quite a bit of sense as we are in a downtrend.

GBP/JPY  Video 22.08.19

Breaking below the hammer from the trading session on Tuesday would be a very negative sign as it would be the market crushing the recent attempt to bounce. We are at extraordinarily low levels though, so would not surprise me at all to see this market make that quick break to the upside. I would not look at that as a buying opportunity though, I would look at this as an opportunity to short at a higher level. After all, the Brexit is nowhere near being solved, and that of course is a major problem for the British pound and we are almost certainly going to see a “no deal Brexit” given enough time. I think there is at least one more “major flush lower” coming, and at the very least we will be testing the ¥125 level. Ultimately, this is a “fade the rallies” type of situation.

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.