The British pound has broken down during the week again but found enough support at the ¥145 level to turn things around and form a hammer. This was exacerbated by the Bank of England showing signs of hawkish in this, something that people weren’t expecting to see during the statement. If we can get a significant easing of tensions between the United States and China, this pair should be one that is very positively impacted. However, if we break down below the candle stick from four candles ago, then the market will unwind towards the ¥140 level, and that should be the gateway to much lower pricing. I think that would be in reaction to a negative turn of events with global economies, and I think it would be obvious as to what the cause would be.
On the other hand, if we can break above the ¥148 level, market should continue to go higher, undoubtably testing the ¥150 level, and possibly even the ¥155 level. The British pound looks healthy, but it wouldn’t take much to scare traders as we continue to see tariffs levied against both the United States and China. This is very sensitive to risk appetite around the world, so keep that in mind when trading this market. Hey attention to the stock markets, they rally that should help as well. Overall, I think there is massive support just below.