GBP/JPY Price Forecast – British Pound Probing LowerBritish pound traders sold initially on Tuesday, as we continue to see a lot of fears when it comes to the United Kingdom locking the economy back down.
The British pound initially tried to rally during the trading session on Tuesday but then plunged during Asian and European trading. Because of this, the market then turned around and reached much lower. The ¥133 level was tested, but we have bounced since then. This suggests that perhaps the market is going to trying to find its footing in this area, but I think the main take away here is that we are going to see a lot of volatility in general. After all, if the United Kingdom is going to lock its economy back down, it is difficult to imagine that there is going to be a lot of confidence in the British pound overall.
GBP/JPY Video 23.09.20
Coronavirus figures certainly favored Japan over the United Kingdom as well, so that of course is something worth paying attention to. With that being the case, I do believe that it is only a matter of time before we have to make a longer-term decision, but right now I think you are going to see a lot of back and forth and noisy trading. This will continue to be very difficult to deal with, but ultimately, I think this is a pair that probably goes lower. If we do get a rally from here, I do think that there is a significant amount of resistance near the ¥135 level, and most certainly near the ¥136 level where we have seen a lot of selling recently. With that in mind, I am looking to sell short-term rallies, especially near those two levels above. A breakdown below the bottom of the candlestick opens up the move towards the ¥132 level.
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