The British pound showed a significant rally during the trading week, but struggled to hold above the ¥150 level. This indicates potential difficulties in terms of directionality as we head towards the end of the year. If the pound drops below ¥149, it could lead to a major selloff with a possible move down to ¥145, signaling a “risk off” sentiment globally.
On the other hand, breaking above the week’s candlestick high could push the pound towards the ¥152.50 level, and further towards ¥155. The market has been volatile recently, and breaking key levels could trigger significant moves.
With low liquidity expected towards the year-end, stability might be threatened, as this market tends to react sharply to market sentiment. A potential significant move may have to wait until next year as the market builds up momentum.
For updates on economic events, refer to the economic calendar.