GBP/JPY Price Forecast – British Pound Gives Up Early Gains

The British pound has rallied a bit during the course of the trading session on Monday but gave back the gains to show signs of weakness yet again. If we break down below the ¥151.50 level, it more than likely would open up a move down to the ¥150 level, an area that is psychologically and structurally important. You can see that we formed a massive hammer in that area, and therefore it is likely that we will continue to see that area play a big part and where we go next.

GBP/JPY Video 04.08.21

On the other hand, if we were to break above the ¥152.50 level, then it is possible that we could go looking towards the ¥155 level. In general, this is a market that I think continues to show signs of selling pressure every time we try to rally, and quite frankly this market looks horrible. If we break down below the hammer underneath then it is likely that we could open up a move down to the ¥145 level, possibly the ¥140 level after that. Keep in mind that this pair is highly sensitive to risk appetite, and if that starts to fall off then it will almost certainly punish this pair as well.

Obviously, the exact opposite is true also, but right now it certainly looks as if we are going to continue struggling and with that, I think fading any type of move to the upside until something changes drastically. At this point, I think we are about to see something kind of ugly happen in the overall markets based upon this pair and what is doing.

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