GBP/JPY Price Forecast – British pound continues to test resistance

The British pound rallied a bit during the day on Wednesday, testing the vital ¥146 level. That’s an area that has been resistance recently, and therefore I think it’s only a matter time before the market has two make up its mind for longer-term move, but with the Americans away for Independence Day, it makes sense that it wasn’t going to happen during Wednesday. · FX Empire

Christopher Lewis

Updated Wed, Jul 4, 2018, 9:53 PM

The British pound went back and forth during the trading session on Wednesday in a slightly bullish manner. At this point, it looks as if the resistance is a bit too much to overcome, at least in the short term. I believe it’s only a matter time before buyers will come in on dips, assuming that things can calm down on the trade war front. Otherwise, we could go lower and break down below the previous uptrend line that has been sliced through a couple of times already anyway. Because of this, the market is likely to look at these following levels as important: the ¥146.50 level above as resistance, and ¥145 as massive support. In general, I think it’s probably easier to trade this from a range bound perspective than anything else over the next couple of days.

Ultimately, this is a market that I think will eventually have to make up its mind, but in the short term I believe that the trading world is holding its collective breath to figure out what goes on next with Sino-American relations, as well as many other concerns. Beyond that, even though the Americans technically come back on Thursday, most of them will probably take the majority of the week off, thereby making this a bit of a potentially quiet couple of days, barring some type of news event of course.