GBP/JPY Price Forecast – British Pound Drifting Lower

The British pound has drifted a bit lower during the trading session on Friday, as we continue to drift back and forth. This is an area that has been a difficult to trade for large position traders, as we have gotten a bit ahead of ourselves. At this point, the 200-day EMA sits just below and that of course could cause a significant amount of support. Keep in mind that the market will of course react to all things Brexit, and that means that it can move at any moment. All things being equal, this is a market that I like buying on pullbacks but would need to see them at much lower levels. At this point in time you need to find some type of value.

GBP/JPY  Video 28.10.19

The ¥140 level seems to be a bit of a magnet for price right now, so don’t be surprised at all to see the market continue to go back and forth. That being the case, short-term back-and-forth trading could be the way forward if you can trade with small enough position size. However, if we pull back closer to the ¥135 level, I would be much more apt to put a larger position on. Until then, caution is probably the better part of valor as Brexit headlines will continue to cause major issues. With that being the case, expect fireworks. If we break out above the recent height, we will probably go looking towards the ¥145 level, but I need to see more in the way if stability in order to jump in.

Please let us know what you think in the comments below