GBP/JPY Price Forecast – British pound breaks support
The British pound broke down a bit during the trading session on Friday, slicing through the ¥138 level. Beyond that, we have the 61.8% Fibonacci retracement level as well, both of which being broken to the downside our very bad sign. If we break down below the lows of the Friday session I suspect that we will probably go down to the ¥135 level, and then perhaps down to the 131 young level.
GBP/JPY Video 03.06.19
At this point in time, if we can break above the ¥138.50 level, then the market could go to the ¥140 level. At this point in time, I believe that the market has shown that it simply can’t pick itself up. If it can’t, and of course the negative headlines from the Brexit continue to go across the wires, there’s no reason to think that this is going to get any better.
Beyond that, it looks very likely that the market has to deal with a lot of “risk off” situation as well, and at that point it’s likely that we simply have no interest whatsoever in trying to buy this market as there’s far too much negativity out there to keep the market afloat. I anticipate that a break down below the lows of the Friday session will only accelerate selling, as we are now trying to put ¥137 in the back rearview mirror. Quite frankly, we need some type of good news to turn things around, something that seems to be lacking when it comes to both the UK and the global markets.
Please let us know what you think in the comments below
This article was originally posted on FX Empire