FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
19,570,140Confirmed
724,554Deaths
12,564,839Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
GBP/JPY weekly chart, November 18, 2019

The British pound has gone back and forth during the week, as we continue to see a lot of “push and pull” when it comes to the pair, as the British pound is trying to take off to the upside and all it needs at this point is some type of catalyst to make people either feel more comfortable with Brexit, or perhaps a major “risk on” scenario around the world as it will cause the Japanese yen the selloff in general. That being said, the fact that we are forming a major pen it suggests that we are more than likely going to go higher.

GBP/JPY  Video 18.11.19

Pullbacks at this point will have to deal with the 50 week moving average, and of course the previous support and resistance at the ¥137.50 level. To the upside, if we were to break out above the top of the pennant, I believe that the market goes looking towards the 100% Fibonacci retracement level which is closer to the ¥148.50 level. All things being equal I do believe in the upside, but I also recognize that the occasional pullback can come into play and perhaps offer a bit of value. It would take a complete collapse of Brexit for me to start shorting this pair at this point or some type of major economic event as the Japanese yen would be bought up in order to find safety. According to the technical analysis though, it certainly looks as if the buyers will eventually have their way in this market.

Please let us know what you think in the comments below

Advertisement
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

Trade With A Regulated Broker

  • Your capital is at risk