This is probably one of your more dangerous pairs to trade right now as Boris Johnson has come back from the European Union with a deal, but the UK Parliament has yet to vote on it. Beyond that, there have been major players in the UK parliament suggesting that the boat may not make it, and if that’s the case then where does that leave the British pound? We have seen a very parabolic move to the upside as of late, so it’s likely that we will see some type of significant pullback. At this point, the market will probably be very skittish, and quite frankly as we head into the weekend there could be a lot of negative news coming out. A pullback is very possible.
GBP/JPY Video 21.10.19
Going forward, the 200 day EMA underneath at the ¥137 level should be significant support. At this point, if the market pulls back to their and find signs of a bounce, then I think it’s a nice buying opportunity based upon good news involving the Brexit. The alternate scenario of course would be a break above the shooting star from the Thursday session, showing that the market is ready to go much higher. While it certainly can do that, the reality is that it will be difficult to hang onto that move as it would not only be parabolic but threaten the possibility of being a “blow off top.” At this point I like the idea of buying at lower levels and looking for value.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Futures (GC) Technical Analysis – Setting Up for Breakout While Riding the Storm Out
- Silver Weekly Price Forecast – Silver Markets Form Supportive Candle For The Week
- Natural Gas Weekly Price Forecast – Natural Gas Markets Finish Week Is One
- AUD/USD Forex Technical Analysis – Short-Squeeze Could Take Aussie to .6863 into Close
- Gold Price Forecast – Gold Markets Sideways
- Silver Price Forecast – Silver Markets Form Supportive Candle In Quiet Session