GBP/JPY Price Forecast – British pound continues to struggle

The British pound has initially tried to rally during the day on Monday to kick off the week but ran into a lot of resistance, breaking down rather significantly. The markets look very likely to continue breaking down, and if you squint, you can see a bearish flag kicking off. Because of this, I think that fading the rallies will continue to be the best way to trade this market, perhaps jumping in and out. Longer-term, I anticipate that we will go to the ¥142.50 level, and then possibly the ¥140 level after that.

GBP/JPY  Video 04.12.18

If we did manage to turn on a break above the ¥146 level, then I think we could be looking ready to go higher. I believe that ultimately we would go testing the downtrend line that I have marked on the chart, and then possibly the ¥150 level. That doesn’t seem very likely though, and I think that the market will continue to find plenty of reasons to fall from here. Overall, I like shorting this market and have no interest in trying to buy it anytime soon. We essentially will need some type of Brexit deal for this market to go higher, a lease for a longer-term move. If we did break above the ¥150 level, then I would suggest that the entire trend has turned around finally. I think it happens eventually, but not until we get some type of settlement involving the Brexit.