The British Pound Gives Up Massive Gains

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound initially shot higher during the trading week but has given back the gains to show signs of massive negativity. At this point, it is worth noting that the British pound has broken below the 1.30 level against the greenback, which puts a certain amount of negativity on the British pound against everything. Furthermore, the Japanese yen is far oversold, so it is not a huge surprise that we would see something like this happen.

The shooting star will capture a lot of attention, and therefore I would not be surprised at all to see this market start selling off further. This will be especially true if the British pound dropped below 1.28 against the US dollar because it will show a massive change in attitude. At that point, the British pound would become toxic, and therefore I think this pair would fall apart quite drastically.

The ¥160 level underneath should be supported, as it is a large, round, psychologically significant figure, and an area that a lot of people will be paying close attention to. At that point, it is likely that the market will attract a lot of attention, but if we were to break down below there then we could drop another 250 points rather quickly. I do not necessarily see that happening, just that it is a possibility.

On the other hand, if we turn around and rally from here, then we will more than likely go looking to reach the top of the candlestick. I think this market needs to pull back, so this might actually be rather healthy.

GBP/JPY Price Forecast Video 25.04.22

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