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GBP/JPY Weekly Price Forecast – British Pound Turned Around to Show Support Again

Christopher Lewis
·1-min read

The British pound has fallen significantly during the course of the trading week to reach down towards the significant support level underneath before bouncing again. Because of this, it looks as if the market is trying to recover for a bigger move, but there are quite a few hurdles above that offer a certain amount of resistance. The ¥152.50 level course is an area where we have seen a lot of resistance previously, so it would obviously be an area of interest for sellers to get involved. That being said, if we break above there the market then goes much higher.

GBP/JPY Video 27.09.21

If we were to turn around a break down below the bottom of the candlestick, it would be a very negative turn of events, perhaps opening up a move down to the ¥145 level, and then followed by the ¥140 level. That being said, it would take quite a bit of effort to make that happen, so I am not necessarily looking for that scenario right away. The market breaking down below the bottom of the candlestick would of course send a flood of new sellers into the market, so I think at that point in time you could get aggressive. Until then, the market is going to be very choppy and listless, as we have seen over the last couple of months. All things been equal, things look as if they are sticking to a range in general, but pay close attention to the bottom of this candlestick as it could kick off a huge move.

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This article was originally posted on FX Empire

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