GBP/JPY Price Forecast – British Pound Breaks Recent Highs

The British pound has rallied significantly during the trading session on Friday as we have broken through a significant amount of resistance. Ultimately, the market did take off and it looks as if we are ready to go much higher. Ultimately, people are trying to price in the potential Brexit deal heading into the weekend, so the idea is that the opening session on Monday might be a gap higher. Having said that though, the market is likely to see more bullish pressure. At this point in time though, if we do pull back, I think it will only attract more buyers. Furthermore, I believe that the ¥140 level should offer a significant amount of support.

GBP/JPY Video 07.12.20

The size of the candlestick is rather important, and it should be noted that the British pound is fighting in both directions, so this is not going to be an easy trade. However, it is obvious that the market is going to continue to favor the upside and therefore I think that the pullbacks will come fast and furious, but it should be buying opportunities. Overall, it is likely that the market could go looking towards the ¥142 level over the longer term, unless of course we get some type of deal with Brexit, which could send the market dare much quicker. As far as breaking above the ¥142 level, that may take a bit of even better news but really at this point that would be your initial target. If we break down below the ¥139 level, it is likely that we would go looking towards the 50 day EMA underneath.

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