GBP/JPY Weekly Price Forecast – The British pound goes back and forth

The British pound went back and forth during the course of the week, forming a bit of a neutral candle stick just above the psychologically important ¥135 level. The ¥135 level is psychologically important, but it isn’t necessarily structurally important beyond the fact that it is a full number. We are below the 61.8% Fibonacci retracement level, so there is the possibility that we wipe out the entire move and drive down towards the 100% Fibonacci retracement level, suggesting the ¥131.50 level underneath.

GBP/JPY  Video 15.07.19

If we break above the weekly candle that we just finished, then we could go back towards the 61.8% Fibonacci retracement level which is close to the ¥138 level. Breaking above there opens the door to the ¥140 level. Alternately, as I mentioned previously if we were to break down below the ¥135 level, then it opens the door to wipe out the entire move.

Keep in mind that the market is very sensitive to risk appetite around the world, so pay attention to whether or not stock markets are rallying, gold is rallying, and bonds are rallying. Keep in mind that the typical correlations in the world’s markets are disconnected. Were in a downtrend, but we also are at a major level to pay attention to due to the round figure itself. Ultimately, the weekly close should be paid close attention to, as it could determine where we go for the next several months based upon the location.

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