GBP/JPY Price Forecast – British pound continues to grind higher

The British pound pulled back slightly to kick off the trading session on Thursday but did find buyers closer to the ¥147 level. This is an area that is somewhat important in the sense that it is essentially where we broke above the downtrend line. However, I do see a lot of noise above as shown by the ellipse drawn on the chart, which sits just below the ¥150 level. It is because of this that I believe the upside is somewhat limited in the short term, and of course we are a bit overbought. This market desperately needs to pullback to find more buyers, and one of the hardest trade situations to find yourself and at times is something like this, where it looks very bullish, but you know that things are getting expensive.

GBP/JPY  Video 01.03.19

I like buying dips in this market, but I do need to see a little bit bigger dipped to get excited about this. The alternate scenario is that we have to wait until we clear the ¥150 level and start buying. Based upon the bullish flag underneath that I have marked on the chart, we should be going high as ¥155. Looking at this chart, I think we have a significant amount of noise that we will need to be working through, and therefore we will more than likely find a nice buying opportunity at lower levels. Sitting on your hands sometimes is very difficult to do but unfortunately that’s probably where we are.

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