GBP/JPY Price Forecast – British pound finding support

The British pound fell a bit during the trading session initially on Wednesday but has found a bit of support again at the bottom of the candle stick from the Tuesday session, and of course the 50 day EMA that I have highlighted on the chart. At this point, if we can break above the 200 day EMA, then I think the market can continue to go much higher. Keep in mind that this currency pair will be driven quite drastically by Brexit headlines, and therefore we are apt to see a lot of volatility out of the blue. As there has been a lack of headlines, people have simply collected profit from the recent run higher.

GBP/JPY  Video 07.02.19

I do believe that there’s been enough technical damage done to the downside that we are eventually going to break to the upside. That doesn’t mean that it’s going to be easy to continue to go higher, just that the downtrend has been broken. We haven’t necessarily started an uptrend yet, but it certainly seems to be starting to form. If we can break back above the 200 day EMA, then that will show the 200 day EMA area as offering plenty of support, and that could get a lot of fresh money into this market as it is a bullish technical signal. However, if we break down below the 50 day EMA, we could find this market reaching down to the ¥140 level rather quickly.

Please let us know what you think in the comments below