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

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