GBP/JPY Price Forecast – British pound continues to struggle

The British pound initially rallied during the trading session on Wednesday but has ran into a significant amount of resistance at the ¥132 level yet again. Ultimately, this is a market that has been struggling overall, and therefore the fact that we have given back most of the gains should not be a huge surprise.
Christopher Lewis
GBP/JPY daily chart, October 10, 2019

The British pound has rallied a bit during the trading session on Wednesday, as the British pound continues to go back and forth due to the headlines involving the Brexit. In this pair, it’s also a bit of a risk barometer that should be paid attention to, as traders continue to see headlines back and forth involving the US/China trade set up, which of course has a major effect on risk appetite around the world. There has been rumblings about the Chinese taking a “partial deal”, something that shows that China may be flexible, but at the end of the day the Americans are going to accept that.

GBP/JPY  Video 10.10.19

The pair continues to fail at the ¥132 level, and therefore it should be paid attention to the scenario of failing not only there, but the 50 day EMA just above. Ultimately, this is a market that will probably continue to see a lot of back-and-forth action going forward, based upon the occasional headline. However, one thing that’s hard to deny is that the minefield that is Brexit and the US/China trade talks will continue to cause issues. And signs of uncertainty, most market sell off. This one will be any different obviously. To the downside, the ¥130 level should offer a certain amount of psychological support, so I would be aware of that potential on a selloff. Breaking through the ¥130 level, it’s likely that the market could go down to the ¥128 handle.

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