GBP/JPY Price Forecast – British pound grinds higher to start the week
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The British pound rallied a bit during the trading session on Monday, reaching towards the ¥149.50 level, before showing signs of exhaustion again. The market above at the ¥150 level will certainly have a significant amount of exhaustion and resistance built in, so therefore I’m looking for an opportunity to go short of this market.
I would only short this for a small move though, I think that the longer-term selling pressure will return to ¥150. A break above that level then allows the market to enter more of a “buy-and-hold” phase, but right now I think there is too much political drama around the United Kingdom for the British pound to be strong for longer-term move. I believe that we will continue to chop around, and I think that eventually we will get some type of clarity, but right now we don’t have the clarity that I prefer to have. I think short-term, we see sellers, longer-term we will see massive sellers above. However, we need to keep both possibilities in mind, which of course could change in a heartbeat. At this point, I think that the pair will continue to be noisy due to the political situation in the UK, and of course risk appetite around the world. I believe that a small trading position is probably the best way to approach this market, as that noise is going to continue to drive this market overall. I think headlines continue to be a major factor for short-term or erratic trading.
GBP/JPY Video 17.07.18
This article was originally posted on FX Empire