GBP/JPY Price Forecast – British pound spikes due to false headline

The British pound spiked tired due to a false headline coming across twitter that the British had decided to compromise on the Irish border. Nonetheless, this is a market that was already trying to break out of a triangle anyway, so therefore I think it’s a bit of a moot point.
Christopher Lewis
GBP/JPY daily chart, October 02, 2018

This pair continues to be very noisy but it certainly looks as if it has an upward proclivity currently. This bike that you see on the hourly chart was due to a twitter headline that was false, but I believe we were trying to break out to begin with, so it only sped up what could have been the inevitable. I do recognize that we have a lot of noise above, and in particular near the ¥150 level, an area that should be psychologically important to say the least. With that in mind, I believe that we are looking at an opportunity to buy the dips, but you should also be very cautious. I would make sure that you had reasonable stop loss is in place, especially near the ¥148 level, which I see as a “must hold.”

If we were to break down below that level, I think we could go to the ¥147.50 level rather quickly. I recognize that the ¥150 level is going to be difficult to break above, but once we do it should freeze the market to go much higher. This is a market that should continue to be driven by Sino-American relations and of course the Brexit, so keep that in mind. In other words, headlines are going to come along and slam the market occasionally. This is why having stop loss is in place is absolutely crucial when it comes to trading “The Dragon.”

GBP/JPY  Video 02.10.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.