GBP/JPY Price Forecast – British pound falls initially on Friday to find buyers below

The British pound initially fell during the day on Friday, breaking down towards the ¥147.50 level before turning around and showing signs of life. The market looks as if it is trying to go higher though, as the Americans, board. · FX Empire

Christopher Lewis

Updated Fri, Jul 13, 2018, 9:57 PM

The British pound has pulled back initially during the trading session on Friday but has found plenty of support near the ¥147.50 level to bounce rather hard. Because of this, it looks as if the buyers have come back into the marketplace, and I believe that we are going to turn around and see signs of life again. The market will continue to reach towards the ¥148.50 level, the ¥149 level, and then eventually the ¥150 level. I recognize that we will get the occasional pull back and of course this market is sensitive to risk appetite overall, so keep in mind that the headlines will cause issues.

All things being equal though, it’s obvious that there is bullish pressure and that the market should continue to find plenty of reasons to rally. The longer-term attitude of the market is higher, so I believe that traders are looking towards the ¥150 level as a potential target. Once we break above there, the market then becomes more of a “buy-and-hold” situation, especially if we can get some type of resolution between the United States and China, which right now seems to be one of the bigger headlines around the world. Order flow looks good underneath, and I think we will continue to see value hunters and large positions be put on into this market. I do like buying the dips and have no interest in shorting anytime soon as I think there are plenty of areas underneath that could cause upward pressure.