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GBP/JPY Price Forecast – British pound continues to hover above 146

By:
Christopher Lewis
Updated: Jul 26, 2018, 03:37 UTC

The British pound continues to hover above the ¥146 level, an area that has been a bit of a “flip” for price. After breaking down below the uptrend line on the chart, we dropped a bit, now we have reached towards the line again, and dropped a bit. However, the ¥146 level is offering support. The question now is whether we are going to continue the downtrend, or are we trying to form some type a basing pattern?

GBP/JPY daily chart, July 26, 2018

The British pound has tried to rally initially during the day on Wednesday, testing the previous uptrend line and then dropping from there. However, the question now is whether or not we can turn back around based upon the recent rally? At this point, it looks as if the ¥146 level is going to continue to offer a bit of support, and if it can hold I think that we could be turning around. I also recognize that the British pound unfortunately has to deal with the political issues in the United Kingdom, which of course is trying to decide what to do about the Brexit.

I believe that the market will continue to be noisy, but I think that there are a certain amount of problems involving the British pound, but at the same time I think that if we get a cessation of the global trade tensions, that could turn things around and have money flowing away from the Japanese yen. Overall though, I think the one thing you can count on is a lot of noise in this pair, because there are so many issues at the moment. It would not be a real stretch to suggest or perhaps staying away from this market in the short term might be the best thing to do.

GBP/JPY  Video 26.07.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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