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Christopher Lewis
GBP/JPY daily chart, November 20, 2019

The British pound has shown signs of consolidation again during the day on Wednesday, as we are simply going sideways. Overall, it looks as if we are forming some type of bullish flag or pennant, and you can see the same thing with the GBP/USD pair, the GBP/NZD pair, and many others. At this point, the market is finding a lot of support underneath at the 200 day EMA as well, so pay attention to that as well. The 50 day EMA is starting to reach towards that level, and at this point it’s likely that we will continue to go forward and to the upside as soon as we get some type of good news involving Brexit.

GBP/JPY  Video 20.11.19

The so-called “golden cross” will bring longer-term technical traders into the fold as well, so it’s worth paying attention to. I believe at this point if we do break above the ¥141.50 level on a daily close it will probably signal that this pair is ready to go to the 100% Fibonacci retracement level which is closer to the ¥148.50 level. At this point, pullbacks continue to offer buying opportunities unless of course there is some type of massive “risk off” scenario globally that has people buying the Japanese yen hand over fist. In general, I like this market to the upside, but I recognize that a certain amount of patience will be needed in order to take advantage of the potential move. Remember, the market moves on its own timeframe, not yours.

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