The British pound has been remarkably resilient over the last couple of months, even though we have had massive noise around the world, and of course we still have Brexit to worry about. While this does not logically make any sense, the reality is that price is truth, and that is all that truly at the end of the day will help your account. If that is the case, then you cannot be a seller of this pair, at least not right now. It does not matter what “should happen” it is what “does happen.”
GBP/JPY Video 10.07.20
I can give you hundreds of reasons why we should have more of a “risk off” attitude around the market which should send this pair lower, but at the end of the day it is obvious that nobody seems to care about anything related to risk right now. With that, a break above the 200 day EMA should send this market to the upside, giving the buyer yet another reason to get bullish.
To the upside, it looks like the market is trying to go towards the ¥140 level, which has been massive resistance. That for the buyers right now seems to be the target, and short-term pullback should offer buying opportunities from what history tells us. However, if we were to turn around a break down below the 50 day EMA it could show the first sign of serious trouble. With this, keep in mind that the buyers simply have not given up.
For a look at all of today’s economic events, check out our economic calendar.