GBP/JPY Weekly Price Forecast – British Pound Looking for Support

The British pound has fallen significantly during the week, showing signs of weakness. Ultimately, we did see a bit of a bounce later in the week, so that does suggest that perhaps the British pound is going to fight against the Japanese yen. It is worth noting that the previous weekly candlestick was a bit of an inverted hammer, and that does suggest that we could have a bit of back-and-forth trading in this area and could be trying to form some type of short-term range. It is also worth noting that there is a lot of support underneath its upon previous action, so it is likely that we could see an attempt that a bounce, if we can break above the weekly candlestick from the previous week, the market is likely to go looking towards the ¥140 level. On the other hand, if we break down below the candlestick for this previous week, we more than likely go looking towards the ¥132 level.

GBP/JPY Video 28.09.20

The biggest problem you are going to have trading this market is the fact that the British pound is going to be thrown around by rumors and headlines involving Brexit, and of course this pair does tend to move back and forth based upon risk appetite in general. If risk appetite starts to fall off, that weighs upon this market, and if we get some type of negative Brexit headline, that could be a bit of a “one-two punch” for this pair. On the other hand, if we suddenly get a huge “risk on move”, that could send this pair higher. Keep your position size small as the most important take away.

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