GBP/JPY Weekly Price Forecast – British pound falls for the week

The British pound fell hard during the week, after initially trying to rally to reach down towards the ¥142.50 level. This is an area that has been supportive in the past, so it makes sense that we saw a bit of buying pressure in this region. However, it’s very unlikely that we will be able to do so unless we get some type of good announcement of the US/China trade relations, I think it’s good to be difficult for more of a “risk on move” which of course would signify the British pound going higher against the safety currency of the Japanese yen.

GBP/JPY  Video 13.05.19

If the market were to break down below the bottom of the weekly candle stick, or just simply the ¥142 level, I think we are more than likely going to go down to the ¥140 level. This will more than likely be a scenario where the US/China trade talks have fallen apart, and the markets find themselves freaking out and looking for safety everywhere. At that point, I’m not even sure if the ¥140 level would hold. We could very easily see a bit of a market meltdown if things get ugly enough.

That being said, if we get good news out of the trade relations talks, then we can start to focus on the good economic numbers out of the United Kingdom that came out on Friday. That should send this market looking towards the ¥145 level initially, possibly even higher than that. One thing is for sure, things are about to get very volatile.

Please let us know what you think in the comments below