The start of last week saw the GBP pulling back in the market as concerns over the coronavirus spread. However, by the end of the week with the reveal of the Bank of England deciding to keep its interest rate unchanged, the Pound rose sharply, reaching a high of 143.25 against the Yen.
Following the official exit of the UK from the European Union on Friday, there was a minor gap of 30 pips, which was quickly filled after the markets opened.
As the Pound closed the week on a bullish trend, we could see it continue to trend upwards this week. A lot of movement can also be expected throughout the week as the Non-farm payroll (NFP) approaches, one of the most important events of the trading month.
Our Alchemist Trader Andre had this to say about the Pound/Yen’s potential movement for the week:
“GBPJPY - Price is trading within the consolidation zone of 144.500 - 141.000. The price has rejected the 50% Fibonacci zone 4 times at 144.500 and is now trading at 142.800. We could see prices moving to the up side retesting that zone again, and breaking that we could see prices going to 148.000. Rejecting 144.500 we could see prices going back to 141.000, and breaking this level we could see prices going to 139.400.”
For Andre’s full analysis watch his video here, or on Instagram at blackbull_markets.
The UK officially left the European Union on Friday, after 47 years of membership, and more than 3 years after its vote to do so. There were still mixed feelings amongst UK citizens as some celebrated, while others protested. Thousands of people gathered in Parliament Square to listen to speeches and sing songs, while there were protests, rallies, and candlelight vigils from those opposing the decision.