GBP/JPY Price Forecast – British pound continues to chop

The British pound went back and forth during the session on Tuesday, as the ¥145 level continues to offer a bit of resistance. That makes sense, because it is the bottom of a massive daily candle, it of course is a large come around, psychologically important number. I think at this point, there is a significant amount of support underneath, extending down to the ¥142.50 level. I think we are trying to grind our way down to that level, but obviously there is a lot of noise out there to continue to make this market a bit difficult.

GBP/JPY  Video 21.11.18

If we were to break down below the ¥142.50 level, that would be a very negative and we would probably see this market looking towards ¥140 level. I anticipate there might be a slight bounce between now and then, but as you have seen over the last several months, anytime this pair bounces, it’s a selling opportunity. If we do break above the ¥145 level, then the market probably goes looking towards the ¥146.50 level next. The downtrend line above continues to work against the value of this pair, and of course the Brexit continues to be a major problem as well. Quite frankly, every time we get some type of positive headlines, it seems to be disputed almost immediately. I believe that Algo traders are getting lambasted in this environment, so you might as well take advantage of their stupidity. I certainly have no interest in buying this pair in the current environment.