GBP/JPY Price Forecast – British pound continues to fall

The British pound initially tried to rally during the trading session, but then broke down towards the 50 day EMA which is painted in red on the chart. At this point, the ¥133 level looks to be offering support, but if we were to break down below there it opens up the door for a possible move down to the ¥131 level. Ultimately, this is a market that is wrist sensitive, and of course there are a lot of reasons under the think that risk appetite is going to be all over the place. With the added specter of a possible impeachment hearing, a lot of market participants are getting a bit nervous. However, it’s probably overdone.

GBP/JPY  Video 26.09.19

To the upside, the 38.2% Fibonacci retracement level at the ¥135 level has offered plenty of resistance. By breaking through the “hanging man” several days ago, the market should continue to go lower, as the market participants worry about several different things at the same time. All things being equal, this is a market that will continue to react to the latest headlines, which of course is going to be a major issue. If we were to turn around and break above the ¥135 level though, then it’s likely that the 200 day EMA will be targeted above, which is close to the 50% Fibonacci retracement level. All things been equal though, it’s probably only a matter time before something negative comes out of the United Kingdom.

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