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The British pound broke down rather significantly during the trading session on Friday, reaching down towards the 150.25 level, an area that extends down to the 150 level. The market looks rather supportive, and I think that it is only a matter of time before the buyers get involved, but if we were to break down below 150, that could send this market much lower, and start some type of panic selling. I don’t think that is likely to happen though, because we are already starting to see signs of support and stability.
I think that if we can break above the 150.75 level, the market is likely to go to the 152.25 level. I do like the idea of picking up value in this market, and I believe that the British pound has been a bit oversold during the trading session. I think that longer-term, we are likely to go towards the 155 handle, but a move below the 150 handle does change my outlook completely. I like the idea of going long on signs of stability, but you should probably be cautious about putting too much money to work right away. I think that you can add slowly as the market works out in your favor, but it is probably going to be a bit intimidating if you are not used to this type of volatility. Keep your position size small, and then add as the market agrees with your trading outlook.
GBP/JPY Video 30.04.18
This article was originally posted on FX Empire