GBP/JPY Price Forecast – British Pound Continues to Look Threatened

The British pound initially tried to rally during the trading session only to turn around and break down quite a bit. Ultimately, this is a market that looks as if it is rolling over, trying to show signs of weakness yet again. If we do continue to see the ¥152.50 level offer resistance, and thereby I think we are getting ready to kick off the next leg lower. If and when that happens, it is very likely that the market will go looking towards ¥150 level. This is an area that of course will attract a lot of attention as we have bounced quite drastically from there and of course have a lot of psychological importance attached to it as well.

GBP/JPY Video 03.08.21

The pair has recently formed a couple of shooting stars which of course is a very negative sign, and therefore I think it makes perfect sense that we continue to break down. On the other hand, if we were to turn around and take out the couple of shooting stars to the upside, that would obviously be a very bullish sign and could open up a move towards the ¥155 level. Obviously, that would be an extraordinarily bullish sign considering that we have been drifting lower for a while, and it would be a complete reversal of the overall attitude.

Keep in mind that the market is highly sensitive to risk appetite, and of course goes up and down with it. The pair is highly sensitive to whether or not people are willing to step out on the risk spectrum or not. As the Japanese yen is considered to be a major safety currency, this pair will fall when people are nervous.

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