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GBP/JPY Price Forecast – British pound falls significantly to open week

Christopher Lewis
Updated
The British pound has fallen significantly to open up the week against most currencies, showing signs of concern when it comes to the Brexit. The market looks likely to be punishing the British pound due to uncertainty when it comes to the Brexit. With this being the case, it’s likely that we could see a bit more in the way of softness.

The British pound has fallen against during the trading session on Monday, to open up the week with softness. I believe that the market is probably going to continue to be a bit difficult to deal with, but I recognize that we are probably going to see a lot of volatility in the short term. In general, I believe that this market is probably one that’s going to move to the trade war issues, and of course risk appetite around the world. It appears that the Americans are going to sell off the stock market, so that could be a hint that this pair is going to drop as well.

By breaking down below the ¥145 level, we have cleared a barrier to go much lower. I think that the next support level is obviously the ¥144 level, but I think that there is probably even more support closer to the ¥143 level. Short-term rally should continue to be selling opportunities, and therefore I like the idea of putting money to work on signs of exhaustion after we rally. Ultimately, this is a market that will continue to be noisy, but that’s nothing new for this pair. Keep in mind that the pair is very volatile, so you will need to be cautious, and I would start out with small positions and only add once you are proven correct.

GBP/JPY  Video 07.08.18

This article was originally posted on FX Empire

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