The British pound fell a bit during the trading session on Thursday, slicing through the ¥138 level, before bouncing slightly a little later in the day. However, the onerous is still on the buyers, as although they’ve shown some stability as of late, the reality is we still haven’t taken out the nasty candlestick that sent us so much lower. That coincides nicely with the ¥140 level, so until we break above there I still think rallies are probably to be sold. With that in mind, this is a marketplace that will continue to be very choppy, but I think favors lower levels.
GBP/JPY Video 11.01.19
This of course would change immediately if the Brexit is agreed upon, or perhaps in the wake of the US/China trade relations breakthrough. There was a bit of positive news coming out of the meetings this past week, but there was nothing concrete decided upon, so it’s very likely that we will see a certain amount of “wait-and-see” attitude. With that in mind, I think the downside is looking the more likely direction, but I don’t think we are going to see a meltdown like we did a couple of weeks ago. Fading short-term rallies continues to work, as we are Road support underneath. That being said, be cautious about your entries and keep your position size a little bit lower as uncertainty is still a major factor in the marketplace right now.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Futures (GC) Technical Analysis – January 10, 2019 Forecast
- EUR/USD Price Forecast – Euro pulls back from 200 day EMA
- Crude Oil Price Forecast – crude oil markets run into resistance
- USD/JPY Price Forecast – US dollar trading at support
- Silver Price Forecast – Silver markets continue to slide sideways
- AUD/USD Price Forecast – Australian dollar continues to grind