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Christopher Lewis
GBP/JPY daily chart, November 25, 2019

The British pound has initially tried to rally during the trading session on Friday, but then fell again as we continue to see noise in the Forex markets. This is a market that has been consolidating for some time, forming a bit of a flag pattern, so it should not be a major surprise that we have done this move during the day. Ultimately, this is a market that will eventually make a decision, but right now it’s all about elections and the Brexit. There is in a whole lot to do with the British pound right now because the election is several weeks away, and between now and then market participants are simply guessing as to where we go next.

GBP/JPY  Video 25.11.19

It does have a bit of a “risk barometer” attitude attached to it so keep in mind that how the markets go, this pair will probably go as well. That being said, if we get a major “risk off” move, this pair will drop, just as it will rally on signs of risk appetite. One thing is for sure, it seems as if risk appetite continues to be relatively strong longer-term, so I do anticipate that eventually we break out to the upside, although it may be a couple of weeks before we see it. If we get that move, it should in theory measure for a move all the way to the ¥149 level based upon the 100% Fibonacci retracement level. Between now and then, we remain range bound.

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