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.

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