GBP/JPY Weekly Price Forecast – British pound find buyers

The British pound has initially fallen during the week but turned around to explode to the upside and break above the ¥140 level, even the ¥141 level which is a very strong sign. However, when you look at the longer-term chart, you can see clearly that we have been in a down trending channel, so a bounce could lead to higher levels you can sell from. In the short term, I believe that traders are starting to pay attention to the idea of a delayed Brexit as reason enough to go long, a lease for a couple of candles.

GBP/JPY  Video 21.01.19

Ultimately, I think that we are trying to form a bit of a base but these things normally take significant time. The British pound unfortunately trades on headlines coming out of Twitter these days more than anything else, which of course is highly manipulated. High-frequency algorithmic trading robots then kick the market around and caused chaos. This has been the norm for a while, and I think will continue to be the norm going forward. I think short-term, meaning the next couple of weeks, we probably get a little bit of a rise in this pair. However, I think that the ¥145 level will be massive in its resistance, and difficult to break above. The alternate scenario is that we break down below the lows of this week and the week before, which could send this market plunging from there. I would be cautious and I certainly wouldn’t put a lot of money in this market right now.

This article was originally posted on FX Empire

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