GBP/JPY Price Forecast – British Pound Gets Hammered Again

The British pound initially tried to rally during the trading session on Thursday but got sold off rather rapidly. This continues to be a very “risk off” environment, so this is something that you need to be aware of. It looks as if the ¥135 level is starting to give way to the selling pressure, so it is very likely that we could see a bit of follow-through. At this point, I refer you to my previous analysis that stated if we were to break down below the ¥135 level, it is very likely that we could go looking towards the ¥133 level.

GBP/JPY Video 30.10.20

The ¥133 level is where we had recently bounced from, and therefore it would make sense that it offers a bit of a target. Ultimately, I think this is a market that is starting to show more of a proclivity to breaking down than anything else and let us face it here: there are a whole slew of things to be concerned about, and not just in Great Britain. Remember, this pair does tend to be very risk sensitive so it would make sense for its selloff in an environment where coronavirus is starting to rage through the European continent again, the US numbers are up, the United Kingdom is talking about locking things down again, and the Europeans already have.

Beyond all of that, we have the uncertainty of Brexit and the US elections, so it makes absolutely no sense as to why the markets would suddenly be “risk on” which is what you would need to see in order to feel comfortable buying this pair for any significant length of time. Having said all of that, one headline about Brexit could change things, at least temporarily.

For a look at all of today’s economic events, check out our economic calendar.