GBP/JPY Price Forecast – British Pound Bounces to Kickoff Week

The British pound of course is probably one of the more toxic markets to trade right now, as we are now starting to think about Brexit yet again, and with the noisy headlines out there in the usual bickering between politicians, this is going to continue to be very difficult for traders. Because of this, at the very least you should be cutting your position size and half, if not avoiding the British pound altogether. Having said all of that, the technical analysis does suggest that there should be at least a little bit of support in this area.

GBP/JPY Video 15.09.20

Looking at this chart, you can also see the 200 day EMA above offering resistance, and that of course will attract a certain amount of attention. That being said, the market is likely to see a lot of volatility in choppiness, so although this is technically an area where you would expect buyers the jump in, the unfortunate reality is that it only takes one stupid comment from the wrong person to send the markets falling out of the sky, or perhaps shooting straight up in the air. The risk in this pair is extraordinarily high at the moment, so please keep that in mind.

All things being equal, I believe that we are going to see choppy back and forth trading more than anything else and if this does end up being a more sustainable rally or support base, it probably needs to go back and forth and build some type of base for a while before it is truly believable.

For a look at all of today’s economic events, check out our economic calendar.