GBP/JPY Price Forecast – British pound continues to hover
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The British pound continues to hover around the ¥146 level, an area that has been supportive for the last several days. In fact, it looks as if we are trying to form some type of bottoming pattern that we can take advantage of, perhaps giving us an opportunity to go along for a larger move. I believe that the support probably runs down to at least the ¥145.50 level, if not the psychologically significant ¥145 level. The question now is whether the buyers can take off to the upside?
If we can clear the ¥147 level, the market is likely to make that move, perhaps going as high as ¥148 in the short term, and ¥150 in the longer-term. Keep in mind that the pair is highly sensitive to risk appetite, so good news on the trade war or currency warfront could send this market much higher. Alternately, if we get some type of massive move lower, it could be the result of increasing tensions. I believe that the market has probably all but priced in the bad news at this point, so I certainly believe that the risk is going higher, not lower. Overall, this is a market that continues to be very noisy, but most of the time when you are trying to form a basing pattern after a big sell off, that’s the case. If we were to break down below the ¥145 level, that would be extraordinarily bearish.
GBP/JPY Video 27.07.18
This article was originally posted on FX Empire