GBP/JPY Price Forecast – British pound find buyersThe British pound had been grinding at low levels over the last couple of days but found buyers when the Americans came on board. Because of this, it’s very likely that we continue to see a lot of noise, and of course keep in mind that this pair is highly sensitive to global trade, which of course has been rocked by recent tariffs.
The British pound has rallied rather stringently during the trading session as Americans have jumped on and taken advantage of low pricing. The market reached towards the ¥148 level, which of course has been a resistance barrier in the past. I think that it is only a matter of time before we get an opportunity to take advantage of a break out and look for a move towards the ¥149.50 level after that. Overall, this is a market that I think does offer a lot of opportunity for the longer-term trader, but the short term trader will probably be relegated to minor pullbacks that they take advantage of. I believe that the ¥147.50 level should be an area of interest going forward, and I will continue to buy dips based upon headlines.
Overall, I think that the market is going to continue to be very noisy due to the Chinese tariffs, but I think ultimately we have gotten a bit over our fear. Because of this, I think that the market continues to find buyers based upon value on the sharp pullbacks. In general, I believe that the market continues to show signs of volatility that you can take advantage of, but by all means I would be very cautious about my position size. If we break down below the ¥147 level, then we could go as low as ¥145 next. I expect even more support there.