GBP/JPY Price Forecast – British Pound Bounces From Big Figure

The British pound has rallied a bit during the trading session on Monday, reaching above the ¥135 level rather quickly. The fact that we did that shows a bit of resiliency, and it does suggest that we are going to have a little bit more positivity. This is a bit interesting, due to the fact that the United Kingdom is almost certainly going to lock its economy down again. With that in mind, it is hard to believe that the British pound is suddenly going to take off and shoot straight up in the air, but it is obvious that the support at the ¥135 level is starting offer support yet again.

GBP/JPY Video 03.11.20

Ultimately, I think that once we get closer to the 50 day EMA, which is extensively at the ¥137 level, then serious selling pressure will then show itself. I think we are still stuck in a range for the short term, if for no other reason than the fact that we have the presidential election coming, the Federal Reserve meeting, the jobs number on Friday, and a whole host of other potential issues. With that being the case, I do not think that we break out anytime soon, and quite frankly I think this pair is going to remain somewhat range bound in the short term.

With that being the case, we have a nice range between the ¥135 level and the ¥138 level that we have been bouncing around, and I just do not see that changing in the short term. Longer-term, we should get a little bit more clarity, but you probably will not see at this week.

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