Market Outlook and Analysis (Oct2019 Week4)

Currency Pair: GBPJPY

Fundamental Analysis – GBPJPY

Boris Johnson has made progress with the EU representatives, now the main potential stumbling block will be the British Parliament sitting on a Saturday to debate and vote on the Brexit deal. Every vote will count towards the success of the negotiations.

Could this be a case of “buy on rumours, sell on news”?  The GBP has been rallying for the past week coming into this Parliament weekend.

Technical Analysis – GBPJPY

GBPJPY D1 Chart – Potential Bearish Bat Pattern

There is a potential Bearish Bat Pattern completing higher at around the 144.00 levels. The recent movements for the pair have been fundamentally driven and not technical. Hence, throwing out caution to those technical traders out there.

Will looks at the reaction at the Bearish Bat technical levels to decide on the short. RSI currently showing overbought signs on the daily charts.

GBPJPY H4 Chart – Could we be expecting problems at the British Parliament sitting?

With the daily charts showing that the pair is overbought, the bearish divergence on the H4 charts. Could we potentially see the Brexit deal hitting a stumbling block on the Saturday Parliament session?

Let’s monitor this pair closely, at the open of the trading week.

I will try to give another update tomorrow as we see more news coming out of Britian