GBP/JPY Weekly Price Forecast – British pound bounces slightly
While the candle stick for the week was somewhat bullish, but at this point it’s likely that the market will show signs of exhaustion sooner rather than later, as the Brexit continues to cause major issues and of course we have concerns about global growth. At this point, I think some type of bounce from here is simply going to be a scenario where we are correcting an oversold condition that we have seen over the last several weeks. We have fallen straight down, so at this point there are only a certain amount of people willing to sell, and of course there are a lot of people more than willing to take profits.
GBP/JPY Video 10.06.19
At this point, I suspect that the ¥140 level will be resistance, so if we break above there we could go all the way to the ¥145 level. Ultimately, this is a market that is going to be very sensitive to a lot of external factors, but in the short term it’s probably going to get a little bit of a boost just simply do to the oversold condition. Given enough time though, I think we will have another opportunity to start selling. Quite frankly, if you are patient enough, you should get plenty of opportunities the prophet but sometimes we are simply paid to wait, as the great Jesse Livermore once said. The next couple of weeks might be better off on the sidelines when it comes to this pair as the market corrects itself.
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This article was originally posted on FX Empire
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