GBP/JPY Price Forecast – British pound breaks through round figure

The British pound rallied significantly during the trading session as a “risk on” trade came into play after the jobs figure in America was released. We broke above the ¥149 level, and although we are starting to see a bit of resistance there, it’s a good sign that we are probably going to go looking towards the ¥150 level given enough time. · FX Empire

Christopher Lewis

Updated Fri, Oct 5, 2018, 10:32 PM

The British pound has rallied significantly during the trading session on Friday, breaking above the ¥149 level at one point, and it’s a good sign that we are going to start seeing more bullish pressure into the marketplace now that we have gotten this major economic announcement out of the way. Because of that, I am a buyer of dips and I think that eventually we will break above the ¥150 level. Once we clear that, then it becomes the next phase higher, it becomes more of a buy-and-hold type of scenario. I do like the idea of the “risk on” trade, as I think that traders have become a bit too fearful recently. The British pound itself is historically cheap, and I think that will need to be corrected as well.

I look at the 148.50 level is an area that could offer significant support based upon the previous resistance, and I would look for that area to offer an opportunity to get in “on the cheap”, if you don’t have the opportunity to buy a breakout. Either way, we have been making higher lows for some time and it’s obvious that this break out should send more money into the marketplace now that we have the risk event out of the way, which of course is pair is relatively sensitive to, not to mention the headlines from the Brexit.