GBP/JPY Price Forecast – British pound continues to drift lower

The British pound fell a bit during the trading session on Thursday, slicing through the ¥138 level, before bouncing slightly a little later in the day. However, the onerous is still on the buyers, as although they’ve shown some stability as of late, the reality is we still haven’t taken out the nasty candlestick that sent us so much lower. That coincides nicely with the ¥140 level, so until we break above there I still think rallies are probably to be sold. With that in mind, this is a marketplace that will continue to be very choppy, but I think favors lower levels.

GBP/JPY  Video 11.01.19

This of course would change immediately if the Brexit is agreed upon, or perhaps in the wake of the US/China trade relations breakthrough. There was a bit of positive news coming out of the meetings this past week, but there was nothing concrete decided upon, so it’s very likely that we will see a certain amount of “wait-and-see” attitude. With that in mind, I think the downside is looking the more likely direction, but I don’t think we are going to see a meltdown like we did a couple of weeks ago. Fading short-term rallies continues to work, as we are Road support underneath. That being said, be cautious about your entries and keep your position size a little bit lower as uncertainty is still a major factor in the marketplace right now.