GBP/JPY Price Forecast – British pound bounced a slightly on Monday

The British pound has rallied a bit during the trading session on Monday but gave back about half the gains at the ¥144 level by the time the Americans came on board. Ultimately, this is a market that runs on risk appetite more than anything else, and there is a certain amount of it in the market as I record this video. However, we also have to worry about the Brexit, and that of course is a never ending amount of drama to take into account. Struggles with the United Kingdom coming to an agreement with itself let alone the European Union doesn’t bode well for the British pound.

GBP/JPY  Video 30.10.18

I believe that the ¥145 level above is going to be a bit difficult to overcome, but if we did that would be a very bullish sign as it would not only break above the large, round, psychologically significant figure, but it also would be breaking above the top of the shooting star from last week which would also be very bullish. Upon that move, we could probably go to the ¥146 level, and perhaps even higher than that. Alternately, we could pull back from there as it would show a lot of selling pressure, and I think at this point we would probably pull back to the 61.8% Fibonacci retracement level. We are oversold though, so I do believe that we will probably reach towards ¥145 level. Alternately, if we break down below the Friday hammer, that would be extraordinarily negative.