GBP/JPY Price Forecast – British pound goes back and forth

The British pound has struggled to find direction during the Tuesday session, forming a bit of a Chop Fest. At this point, the only thing you can trust is bearish pressure, as the British pound continues to get hammered in general. However, it does look as if somebody is out there trying to pick it up, but I feel it’s only a matter time before they get punished for that. At this point, look for signs of exhaustion to take advantage of, as we continue to see plenty of reasons to short the market. Global concerns of course have been working against this pair, as it looks like we could be heading towards a global slowdown.

GBP/JPY  Video 19.12.18

Beyond that, it’s only a matter time before somebody says something that spooks the British pound overall. After all, it’s only a matter of time before a politician says something rather stupid, as they seem to be prone to do. That will have the Algo traders going wild, as they throw this market around. However, longer-term it’s obvious that we have more of a bearish attitude in general, as there are so many unknowns when it comes to what happens next with Great Britain. Beyond that, the Japanese yen is a safety currency, and that of course is going to get a certain amount of play in this type of environment anyway. Selling signs of exhaustion continues to work, although we may have a bit of a relief rally in the short term. Nonetheless, don’t get sucked into this the market to the upside.