GBP/JPY Price Forecast – British Pound Find SupportThe British pound initially fell during the trading session on Thursday but found support at the 50 day EMA again to turn around and form a bit of a hammer.
The British pound initially fell during the trading session on Thursday, dipping down towards the 50 day EMA before turning around and rallying. That being the case, the market is likely to continue to see a lot of noise in general, but it does look as if we are trying to figure out whether or not we can have a continuation of the previous move. After all, we had broken out to the upside right around the ¥138 level, shot straight to the ¥140 level, and now find yourselves testing that ¥138 level yet again.
GBP/JPY Video 20.11.20
That being said, the candlestick certainly looks as if we are finding buyers so it will be interesting to see how this plays out. It seems as if the British pound continues to have some type of extra life every time you think that it is over. Brexit continues to be a major issue and therefore should be paid close attention to, but at this point it seems as if no matter what happens, the British pound seems to find buyers. Furthermore, this pair is highly sensitive to risk appetite in general, so it does make quite a bit of sense that we should pay attention to the overall global attitude as well.
Most of the early trading session started to see a bit of a “risk off” type of feel, which explains part of the dip. However, you can easily see that there is a lot of resistance in this area due to the fact that there are lot of upward shadows on the candles earlier this week. In other words, we are trying to build base and therefore it looks like the buyers are starting to come back.
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