GBP/JPY Price Forecast – British pound continues to consolidate

The British pound has found quite a bit of noise over the last couple of days as we continue to bounce around the ¥145 level. This is a crucial level that extends support all the way down to the ¥144 level, so at this point it’s almost impossible to short this market. Beyond that we have a bullish flag underneath that should continue to mean something rather interesting, and I believe at this point we will continue to try to do whatever’s necessary to fulfill the promise of the bullish flag, but obviously were going to need a little bit of help from headlines.

GBP/JPY  Video 12.04.19

As soon as we get some type of good news out of the Brexit, I suspect we will probably have a huge move to the upside as without a doubt the biggest problem with the British pound right now is in fact the Brexit. With that being the case, we would probably make a move towards the ¥148.50 level, and then possibly try to break above the ¥150 level. The ¥150 level of course is a major resistance barrier, but the flag does suggest that we are going all the way to the ¥155 level which would make sense considering how cheap we are from a historical standpoint. That doesn’t mean it’s going to be easy, but that is what the technical analysis says. Now of course, if we could only get some type of good news coming from either Brussels or London, that could be the catalyst we need. With the extension of six months, the market didn’t react to it mainly because it was already priced in for something like that to happen.

Please let us know what you think in the comments below