GBP/JPY Price Forecast – British Pound TanksThe British pound got hammered on Wednesday, as there was more of a “risk off” attitude in the markets due to fears about coronavirus infection.
The British pound has fallen rather hard during the trading session on Wednesday, as we continue to worry about coronavirus infections in the United Kingdom, and of course Brexit drags on forever. As the politicians continue to drag out the process, the British pound is starting to show signs of impatience when it comes to Brexit. That being said, the market has been in a range between the ¥135 level and the ¥138 level. At this point in time, it does appear that the ¥135 level is at least trying to support the market again. With that in mind, if we do break down below the ¥135 level, it is very likely that the market goes looking towards the next major support area in the form of ¥133.
GBP/JPY Video 29.10.20
The size of the candlestick is something worth paying attention to, as it is the biggest one that we have had in a while. Because of this, I am a bit cautious about trying to play the range, but I also recognize that large, round, psychologically significant figures like 135 will continue to attract a certain amount of attention. This is simply moving on the latest headline, so at this point in time one has to assume that the range holds of course, unless it does not. At that point you have a specific target that you can aim for in the form of ¥133. It is difficult to imagine a scenario where we break above the ¥138 level in the short term, unless of course we get some type of positive Brexit news. At this point it seems to be a bit far-fetched to expect it.
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