GBP/JPY Weekly Price Forecast – British pound breaks support

The British pound initially tried to rally a bit during the week, but then turned around just below the ¥140 level to break through the ¥138 level. Once they broke below there, it became a very negative look for this market.
Christopher Lewis
GBP/JPY weekly chart, June 06, 2019

The British pound initially tried to rally during the trading week but found enough trouble to continue to go lower. In fact, we broke down below the ¥138 level, an area that is rather significant to pay attention to. The fact that we have done that tells me that we are going to open up a potential run much lower, perhaps as low as the ¥131 level. Ultimately, this is a market that tends to move with risk appetite, and clearly risk appetite has been hammered as of late.

GBP/JPY  Video 03.06.19

Beyond that, we have a lot of issues with the Brexit to say the least, so obviously there are a lot of different things you should be paying attention to here. I like the idea of selling on a break down below this week’s candle, but I also recognize that a headline could turn things right back around. Currently the sellers are obviously in charge, and there’s nothing good-looking about this chart. That being said, if we were to turn around to wipeout the candle stick from this past week and go above the ¥140 level, I’d be a buyer and start reaching towards the ¥142.50 level, and then possibly the ¥145 level.

If we were to see that move it would almost have to be in relation to a more positive tone to financial markets around the world. It would also have to do with the Brexit perhaps going better. At this point though, it’s very likely we continue to struggle.

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
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.