Friday wasn’t an exciting day for the British pound, as it kept going back and forth during the week, and Friday’s trading session wasn’t any different. Seeing the ¥140 level offering resistance, it brings the market to a point where it’s difficult to put a lot of money to work.
Currently, short-term traders will continue to short the market as the time goes by, until the ¥140 breaks over. It will also need to be careful to not break down to a fresh low, if this happens, lower would probably be the only direction.
Recently, the currency pair broker through the descending channel, but it wasn’t too long until it formed a massive hammer. Even though it didn’t get follow-through on that during the past week, but volatility will probably remain in the area.
Going to the downside seems appealing for many, as currently, there might be more opportunities for bad things to happen than good. Once it hits to the downside and breaks the ¥141 level, it gives a chance for a bounce and probably reaches the ¥145 level, providing then, an excellent trade.
It isn’t expected to change the negative trend that has been going on for quite some time, as having the currency pair as high risk due to various factors.