GBP/JPY Price Forecast – British pound continues to press resistance

The British pound went back and forth during the trading session on Monday, showing signs of resistance at the ¥145 level yet again. We have recently broken above the top of the major bullish flag, so it does look like we have plenty of support underneath that will eventually drive this pair higher.

GBP/JPY  Video 26.02.19

Down at the ¥143 level, I believe there is plenty of support based upon a recent breakout, so it makes sense that the occasional pullback may, and offer a buying opportunity. On the chart, I have an ellipse drawn around the resistance barrier that were trying to get above right now, but we also have the 200 day EMA underneath that’s even above the ¥143 level to give us a bit of a boost.

Remember, this pair is highly sensitive to overall risk appetite, and the fact that the Chinese tariffs are being pushed back in the United States, that might be reason enough to have some people looking to short the Japanese yen anyway. If we can get some type of good news out of Great Britain, then we could get a move to the upside as well. Once we clear the ¥146 level, is very likely that we will then start to try to fulfill the flag pole from the pattern, meaning that we could go as high as ¥155, but that obviously is a longer-term call, and not something that we will be fulfilling in the short term or next few weeks.

Please let us know what you think in the comments below