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Christopher Lewis
GBP/JPY daily chart, November 12, 2019

The British pound has gone back and forth over the last couple of weeks, forming a bit of a consolidating channel. At this point, it does look like it could break out to the upside, but we need some type of catalyst to get people excited about owning the British pound again. It will almost certainly have something to do with Brexit, as it is the main driver in general.

GBP/JPY  Video 12.11.19

Looking at this chart, the 200 day EMA underneath should offer support at the ¥138 level, and pullbacks will find plenty of buyers. At this point in time it looks as if we are trying to break through the 61.8% Fibonacci retracement level, and a break above the ¥141 level certainly would do that. At this point, the market could go as high as the 100% Fibonacci retracement level near the ¥149 level. This is a market that continues to be very noisy, as there is a lot of noise when it comes to the Brexit situation. At this point, market participants will continue to favor the upside, because quite frankly the British pound has continued to find plenty of reasons to go higher. At this point, the market will continue to move with risk appetite, which does favor this market going higher in good times, and lower during bad times. At this point, pay attention to stock markets in general, as they rally that should continue to help this pair. There is far too much Brexit noise to simply try to guess what comes next.

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