GBP/JPY Price Forecast – British Pound Continues to Form a Basing Pattern

The British pound has gone back and forth during the session on Monday, as we initially tried to rally, and have formed a little bit of a green candle but have given back quite a bit of the rally. At this point, the market looks as if it is going to see the ¥152.50 level underneath as support, and as a result it is very likely that we will continue to look at this as a potential area of interest. If we were to continue bouncing from here and break above the 50 day EMA, then it would confirm the recovery in this pair. Keep in mind that it would need more of a “risk on” attitude around the world to have this market rally.

GBP/JPY Video 16.11.21

On the other hand, if we break down below the ¥152 level, then it is likely that market will drop towards the ¥150.50 level in route to the ¥150 level. The 200 day EMA sits just above the ¥150 level, so I do think that it is only a matter of time before buyers would come in and pick this up. Any break below the ¥150 level would be extraordinarily negative, and it could start to really cause quite a bit of selling pressure. At that point, I would anticipate that the market would end up falling rather quickly, opening up the possibility of a massive selloff that would not only signified a major shift in attitude, but it would also accelerate the momentum of such a falling of the market.

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