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

The British pound initially fell during the trading session on Tuesday but has found buyers to turn things around of form a little bit of a hammer middle of the day. At this point, the market is looking to try to recover some of the initial losses, but I do see a significant amount of resistance above at the ¥138 level. If we can break above that level, then we can really start to pick things up and reach towards the ¥140 level. Obviously, we would have to have some type of good news to get that move to happen, so therefore it looks likely that we are going to see is more of the same.

GBP/JPY  Video 03.07.19

If we do break to the downside, it’s very likely that the market will probably reach towards the ¥135 level. That is an area that should offer a lot of support based upon the psychology if nothing else, so therefore it’s likely that we would have a big fight on our hands down there. A break down below the ¥135 level would be rather drastic and could send this market much lower. At this point, that probably would have something to do with a major meltdown in the stock markets, or perhaps some type of nonsense with the Brexit, which of course is always possible. Overall, I think a lot of back-and-forth sideways action with a slightly bullish tilt is probably what we are going to see.

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