GBP/JPY Price Forecast – British pound continues to struggle

The British pound ran against the ¥145 level during trading on Thursday, only to find a buzz saw of resistance. We fell back towards the ¥144.25 level, where it looks as if we are trying to stabilize a bit. This chart does look a bit rough at this point, and perhaps even oversold. However, it’s obvious that the British pound is running on basically panic at this point, so it should not be written off as “falling too far.” There are plenty of headlines out there that will continue to move this market place, and I don’t see that changing anytime soon. I recognize that a break above the ¥145 level would be psychologically important for the marketplace, but I don’t necessarily believe that we are looking at an opportunity to throw a lot of money into the market.

I think there is probably much more support near the ¥142.50 level, an area that has been important more than once. I think at this point, you could start to begin a longer-term bullish position, perhaps expecting some type of resolution to the Brexit. However, I would do so with much, and I would be very patient upon adding. I think you probably will get better opportunities to buy this pair down near the ¥142.50 level though, because let’s face it: there are plenty of politicians out there jockeying for position to get their name in the headlines when it comes to the British leaving the European Union.

GBP/JPY  Video 26.10.18