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

The British pound rallied a bit during the week and reached towards the ¥130 level before rolling over slightly on Friday. Ultimately though, this is a market that is very negative and I think the sellers will continue to come back in.
Christopher Lewis
GBP/JPY weekly chart, August 19, 2019
Stack of pound coins macro

The British pound had a positive week, reaching towards the ¥130 level before pulling back slightly. That makes quite a bit of sense as the round number will of course attract a lot of attention. Ultimately, the Brexit continues to weigh upon the British pound and of course we have had a lot of risk out there when it comes to global markets in general. With that, it makes sense that the Japanese yen should pick up a bit of value and interest, and now it looks likely that we are going to continue to drop from here although we are a bit overextended. Longer-term, I fully anticipate that we go down to the ¥125 level.

GBP/JPY  Video 19.08.19

Rallies at this point are selling opportunities from what I see, so at this point I think longer-term traders will probably have to look to short-term charts to get the entry signal. Either way, I don’t have any interest in buying this pair, at least not until we get some type of resolution with the trade wars, and of course most importantly with this particular pair, the Brexit. I don’t think were anywhere near that so I would fully anticipate that the pair continues to go much lower. I’m a seller and not a buyer and I’m not sure when that changes, as the Brexit doesn’t seem to be getting any clearer at this point in time. I believe that we are more than likely going to reach towards the ¥125 and the next few weeks.

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