GBP/JPY Weekly Price Forecast – British Pound Shows Signs Of Resistance

The British pound has tried to rally during the week but then broke back down the show signs of exhaustion at the 61.8% Fibonacci retracement level. At this point, the market looks as if we are ready to drop from here, but it is probably going to be a short-term move. To the upside, the ¥145 level would of course be a large, round, psychologically significant figure that people will be paying attention to, and of course the 200-week EMA is trading in that general vicinity.

GBP/JPY  Video 28.10.19

If the 61.8% Fibonacci retracement level holds as resistance, then the market is likely to go down towards the lows again, closer to the ¥130 level. This would probably be due to some type of negative headline coming out of Brexit but could also be due to the global economic situation deteriorating as well or perhaps even some type of geopolitical concern as the Japanese yen is considered to be a safety currency. With that, if there is trouble out there it’s very likely that the market will rollover as well. At this point in time we are still technically in a downtrend, but it looks as if we are trying to rectify that based upon the recent action. At this point, I would suggest that perhaps the market has simply covered short positions and now awaits to see what happens next between the UK and the EU, making it somewhat the same as last year.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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