GBP/JPY Price Forecast – British pound continues to struggle

The British pound has struggled significantly over the course of the last couple of sessions, grinding down to the ¥143 level. The 61.8% Fibonacci retracement level is in this neighborhood as well, so the Friday close will be crucial. At this point, if we can break down below the ¥142.50 level, then I think the market goes even lower to reach to the ¥140 level after that. This all comes down to risk appetite, which is in the cellar right now.

The market rallying from here will almost certainly have a lot of resistance built in at the ¥145 level, and I would be willing to sell up there on signs of exhaustion. This is a market that has gotten a bit oversold so I would be surprised at all to see a little bit of a bounce going into the weekend, if no other reason than for short covering. However, if we end up breaking below that level during the Friday session, we could collapse completely, looking at an absolute disaster. At this point, the market certainly isn’t one that I’m willing to buy, at least not until we break above the ¥145 level, which would not only be a large round number in the rearview mirror, but it would also break above the top of the inverted hammer that formed during the day on Thursday. That of course would be bullish, but until that happens I suspect we are more than likely going to see rally selloff on short-term charts, with an eventual attempt to take out the support underneath.

GBP/JPY  Video 29.10.18