The British pound initially fell during the course of the week, testing the 140.50 level, but bounced enough to form a slightly neutral looking hammer like candle. That being the case, if we can break above the top of the hammer, I believe that the market then goes much higher, with the first stop being near the 145 handle. A break above the 145 handle, the market should then go to the 148.50 level after that. A break above that level is extraordinarily bullish. I believe that the British pound is starting to find a little bit of upward momentum, and that of course should work against the Japanese yen in this pair. The market has been very choppy and difficult to deal with, but it looks as if the buyers are starting to take more control. The lows continue to go higher, so that of course is the very significant sign of bullish pressure.
Risk sensitivity
This pair continues to be very sensitive the risk, so pay attention the stock markets and futures. The on that, pay attention to the United Kingdom and its negotiating stance when it comes to the European Union. Given enough time, I think this is going to end up being a very nice buying opportunity in the marketplace that tends to move rather drastically. The market should continue to reach higher, and I believe that once we get the Brexit talks out of the way, we could go as high as 160, especially if stock markets are going reasonably well. I think if we do breakdown, the 135.50 level is another area where buyers will find themselves attracted to this market. Ultimately, I have no interest whatsoever in selling, least not yet.
GBP/JPY Video 26.6.17
This article was originally posted on FX Empire