GBP/JPY Price Forecast – British Pound Trying to BounceThe British pound has initially pulled back a bit during the trading session on Thursday but continues to see a lot of headwinds in both directions.
The British pound has shown itself to be somewhat buoyant over the last couple of days, but the market is most decidedly in a downtrend over the long term, and of course we have the ¥135 level above offering resistance. Ultimately, I do not have any interest in trying to get too cute with this pair, and I am simply waiting for an opportunity to sell it. The ¥135 level is an area that will get targeted by both buyers and sellers, so it will be interesting to see how we play there. Beyond that, the ¥136 level offers resistance as well, so I think that we are getting relatively close to an opportunity to short this pair again.
GBP/JPY Video 25.09.20
To the downside, the ¥133 level will offer support, as it has over the last couple of days. I still believe that the market probably break through there and reach towards the ¥132 level. Ultimately, this is a market that is getting ready to see the “death cross” when the 50 day EMA crosses below the 200 day EMA. While I am not a huge fan of that indicator, I understand that a lot of people do pay attention to it. With that in mind, I am looking for signs of exhaustion that I can take advantage of because quite frankly the British pound has a ton of risk around it, not the least of which would be Brexit, but we also have to worry about the United Kingdom locking down its own economy, which of course is not going to be good for the currency either.
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