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The British pound has fallen a bit during the trading session on Monday, reaching down towards the vital ¥145 level. This is an area that is major, and its importance can’t be overstated as it is not only an area of previous structural support, it is also a large, round, psychologically important figure. I think that this market will move in the same manner going forward, I think that selling is an opportunity to take advantage of a significant downtrend that has just formed. After all, we broke through a major uptrend line, and not only this pair, but the GBP/USD pair. What this tells me is that the British pound itself is in a lot of trouble.
Rallies at this time are to be sold at the first signs of trouble, and of course exhaustion. I think that the market will struggle to break above the ¥147.50 level, which is where the previous uptrend line that coincides. Ultimately, the market should continue to see a lot of negativity and volatility, and I do believe that we go much lower, perhaps down to the ¥143.50 level, and then down to the ¥143 level after that. Rallies will struggle to break above the 147.50 young level, but if we did do that, it would be a very positive sign, perhaps reaching towards the ¥150 level after that which has been massive resistance. However, I think it’s very unlikely that this market is going to be able to rally for any significant distance.
GBP/JPY Video 29.05.18
This article was originally posted on FX Empire