GBP/JPY Weekly Price Forecast – British pound bounces slightly

The British pound initially fell during the course of the week, reaching down towards the 134 young level before bouncing significantly to form a bit of a hammer. That being the case, although it does look very bullish, the reality is that this market is oversold.
Christopher Lewis
GBP/JPY weekly chart, July 22, 2019

The British pound broke down significantly during the trading sessions that made up the week and cleared the ¥135 level. However, as we are starting to close the week, we are getting close to that level again. At this point, it is technically a bullish sign but at the end of the day we are still very bearish in this market, and of course the Brexit causes a lot of issues when it comes to the British pound in general. Ultimately, even if we break above the top of the candle stick, I think that the ¥138 level above will be resistance. Overall though, I think it’s only a matter of time before the sellers reenter.

GBP/JPY  Video 22.07.19

Looking at this chart, as we are well below the 61.8% Fibonacci retracement level, it’s likely that we do wipe out the entirety of the move. That means that we will probably be going down to the ¥131.50 area, which is the 100% Fibonacci retracement level. I have no interest in buying the British pound, and quite frankly if you are looking to go against the Japanese yen, you can probably find more momentum to the upside with the Australian dollar or New Zealand dollar as they offer the same type of volatility this pair does but it doesn’t have the Brexit headline risk associated with it. That being the case, I believe that this is a market that we either sell off on rallies that show signs of exhaustion or sell on a break down below the bottom of the candle stick. As far as buying is concerned, like I said – I would be looking in other markets.

Please let us know what you think in the comments below

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US