GBP/JPY Weekly Price Forecast – British Pound Testing Major Support

The British pound has fallen significantly during the course of the week to show signs of negativity yet again, especially as the Bank of England has decided not to taper bond purchases. By doing so, they have shocked the market, which seemed to have been pricing that in. With this being the case, it is not a huge surprise to see that the British pound has fallen, but at the end of the day I think we probably are getting a bit overdone. The ¥152.50 level is an area that is rather supportive, as it has seen a lot of action in the past. Quite frankly, if this market is going to turn around, it is probably going to be somewhere in this general vicinity.

GBP/JPY Video 08.11.21

If we break down below the ¥152 level, then it is likely we go looking towards the ¥150 level. The ¥150 level must be defended if there is any hope of a longer-term bullish market. I believe it is still a bit early to suggest that the entire bullish market is over, but perhaps more of a repricing is needed. The market of course is very sensitive to risk appetite but that nonsense coming out of London probably cause some issues as well. This is a very ugly candlestick that we are looking at, but it does appear that the ¥153 level is trying to offer support. If we get more “risk on trading” around the world, that should help this market as well, so keep that in mind as you put money to work. I would not put a huge position on, but I am starting to think we are about to see a bounce.

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