GBP/JPY Price Forecast – British Pound Reaches Bottom of Range

The British pound has pulled back towards the 132 young level, an area that has been significant support in the past. Because of this, we have seen a little bit of a bounce, but the question now is whether or not it can hold? At this point, it does look like it is trying to hold but it should be noted that we are most certainly at a spot that will determine where we go longer-term. If we can break down below the 132 young level, it is likely that the market goes looking towards the 130 and level rather quickly, then possibly the ¥128 level.

GBP/JPY Video 05.05.20

On the other hand, if we turn around a break above the ¥136 level, then the gap above, although already having been filled, will probably get targeted near the 138 and level. At this point in time, I think it is simply a matter of trading back and forth until we break out of this lavender box that I have on the chart, and therefore we are in a short-term range bound market, but once we break one of those two major barriers, then you can start to put larger amounts of trading capital to work. Ultimately, it is a “two speed market”, so it comes down your timeframe more than anything else. Remember, this pair is overly sensitive to risk appetite, and therefore you should pay attention to other market such as the stock market and commodities markets to give you an idea as to where things are going.