GBP/JPY Price Forecast – British pound falls again on Wednesday

The British pound continues to get hammered overall, as the markets are very skittish of all things Brexit and of course risk appetite. The market is looking to reach towards the ¥145 level, but it looks as if there are buyers willing to step in and defend this level. Whether it is a technical bounce or true structural support remains to be seen, but clearly the British pound continues to be something that is very difficult to trade, unless of course you just simply short every rally. However, this is a large come around, psychologically significant figure, which typically works out to be at least somewhat important to the longer-term buyers and sellers.

If we break down below the ¥145 level, the market probably goes much lower. However, if we can bounce from here we will probably make a move towards the ¥146 level, and then perhaps even the ¥147 level over the next couple of sessions. Quite frankly, this pair continues to be held hostage by the Brexit headlines and the random tweets of random people, so by all means if you are looking to go long of this pair, I would do so with a very small position. As far as selling is concerned, you may want to do the same as far as position sizing simply because things can change in a flash when it comes to this market as it is typically volatile, but even more so as of late.

GBP/JPY  Video 25.10.18