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GBP/JPY Price Forecast – British pound rolls over

By:
Christopher Lewis
Updated: Jun 10, 2019, 15:49 UTC

The British pound fell after initially trying to rally on Monday, as we continue to see weakness when it comes to Sterling, and quite frankly I don’t see anything changing in the short term that tells me anything different.

GBP/JPY daily chart, June 11, 2019

After forming a shooting star on Friday, it’s probably not a huge surprise to see that the market rolled over. The ¥138 level is of course important based upon recent action, but it is also the 61.8% Fibonacci retracement level from the recent pullback. That being the case, and the fact that we broke down through that level and have now retested it tells me that the market could very well roll over and go looking to much lower levels. Ultimately, as a general rule I expect a daily close below the 61.8% Fibonacci retracement level to open up a move down to the 100% Fibonacci retracement level.

GBP/JPY  Video 11.06.19

Remember that this pair is of course being thrown around by the Brexit and risk appetite overall. It’s very sensitive to global trade, so that of course will have an influence on where we go next. We also have the never ending drama with the Brexit, so I think at this point it’s difficult to imagine a scenario where this pair takes off to the upside for any significant amount of time. Ultimately, I believe that what we are looking at is an opportunity to short this market again, as we have wiped out any vestiges of bullish action over the last couple of trading sessions.

We could see a bit of support at the ¥136.50 level as it was the most recent low, and again at the ¥135 level. At this point though, I don’t have any interest in buying this pair unless of course there’s some type of resolution to the Brexit, something I’m not expecting to see in the short term.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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