GBP/JPY Price Forecast – British Pound Continues Consolidation

The British pound has gone back and forth during the last several days, and on Thursday we rallied a bit from the ¥150 level to show more of the same. At this point in time, the most important thing to pay attention to is that the area between the ¥149 and the ¥150 level continues to be a major support level and is heavily defended. However, each successive high continues to get lower so it does make a certain amount of sense that we may see an attempt to break down below the ¥149 level given enough time.

GBP/JPY Video 01.10.21

If we do, then it will kick off a major move to the downside that could send this market all the way down towards the ¥145 level, possibly even the ¥140 level after that. That would obviously be a major “risk off” move that could kick off a lot of selling in general. That being said, we would probably see a lot of selling off when it comes to risk appetite markets overall, so therefore I think it would be a situation where you would see a bit of a bloodbath across-the-board.

On the other hand, if we were to turn around and take out the ¥153 level, then it is likely that we would see this market go looking towards the ¥155 level in a major “risk on” type of move. Looking at this chart, I think we are building up the inertia for a bigger move, but we do not quite have the catalyst to kick things off quite yet.

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