GBP/JPY Price Forecast – the British pound breaks downThe British pound broke down during the trading session on Tuesday, slicing through the vital ¥135 level. This is an area that of course has a certain amount of psychological importance to it and has offered support in the past. At this point, it looks like we could wipe out the entire move.
The British pound broke down a bit during the trading session on Tuesday, as we have sliced through the psychologically important ¥135 level. By doing so, that sets up a move to the downside that could wipe out the entirety of the rally that is now being decimated. That means we could go as low as ¥131.50, perhaps even lower than that.
GBP/JPY Video 17.07.19
Short-term rallies should continue to offer resistance, and therefore I would not be interested in buying this pair anytime soon. Quite frankly, we have just broken out of what looked like was going to be a consolidation area, so that shows further weakness. This seems to be more or less a move in the British pound overall as we continue to see problems going forward with the Brexit and the likelihood of a “no deal Brexit” could come into play.
Ultimately, this is a massive downtrend and that doesn’t seem to be changing anytime soon, so at this point I think all you can do is wait for selling opportunities. I have no interest in trying to fight this market and try to catch a “falling knife.” This market should see a lot of support at the ¥131.50 level, which of course is the 100% Fibonacci retracement level. I could see some type of bounce from there that we can take advantage of, but in the meantime all you can do a short this market in this type of environment.
Please let us know what you think in the comments below