GBP/JPY Weekly Price Forecast – British pound chops while finding support

The British pound fell during the week overall, but not necessarily in a drastic move. Because of this, I think that the market is trying to digest the major gains that we have seen over the last couple of weeks, and I would also point out that the hammer from five weeks ago coincides nicely with a “risk on” move that I’m seeing against the US dollar.
Christopher Lewis
GBP/JPY weekly chart, February 11, 2019

The British pound has gone back and forth during the week, forming a slightly negative candle stick, but at the end of the day it is a market that has shown a bit of resiliency as the Friday candlestick looks a little bit more positive as it is a bit of a hammer. Ultimately, I think that the market is going to continue to look at the ¥140 level as a major support level, and I think that the market could go looking towards the ¥145 level next. In the meantime, I would expect a lot of volatility in the meantime, and of course this pair is going to need to deal with a lot of headlines coming out of the Brexit, which of course is going to continue to be driven by the occasional headline.

GBP/JPY  Video 11.02.19

Pay attention to risk appetite in general, as this pair also is very sensitive to it. I think we will continue to bang around in this 500 point range, but eventually we will break out and go much higher. At this point, I believe we are trying to change the trend but it is going to be very difficult and we need to see the GBP/USD pair break out to the upside in order to follow in this pair. At this point, I’m not interested in selling.

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