GBP/JPY Weekly Price Forecast – British pound continues to grind lower

The British pound continues to be very negative against the Japanese yen, as we have reached towards the ¥141 level. I think at this point, it’s very likely that the British pound will continue to struggle overall, as we have a lot of concerns around the world globally, as the Chinese economic numbers coming out early Friday morning weren’t good. Beyond that, it looks as if we are going to continue to grind towards the ¥140 level as we have a lot of concerns about the Brexit.

GBP/JPY  Video 17.12.18

The Brexit looks likely to be a hard Brexit more than anything else at this point, as the European Union isn’t willing to renegotiate anything. At this point, it’s likely that the British pound will continue to struggle due to the fact that Parliament doesn’t look likely to agree with Teresa May. Until that’s the case, the British pound is going to continue to suffer as we are heading towards the hard Brexit that so many people have feared. A break down below the ¥140 level would be extraordinarily negative, sending this market much lower. At this point, I believe the ¥145 level above is massive resistance, so it’ll be difficult to break above there. If we did, then I think that the downtrend line above continues to offer resistance. Ultimately, rallies continued to get faded, and that’s probably the best way to trade this market in general.