GBP/JPY Price Forecast – British pound finding support

The British pound has pulled back a bit during the trading session on Wednesday, but there is a downtrend line from our previous downtrend channel just below that should continue to offer support. Beyond that, the ¥147 level should also attract a lot of attention. I think at this point we are trying to build up enough momentum to break out and above the ¥150 level. That doesn’t mean that is going to be easy to do, but it is technically feasible due to the fact that we have recently broken a major bullish flag on the daily charts that measure for a move to the ¥155 level. Ultimately, this is a market that I think will continue to enjoy the relatively decent news coming from the Brexit as of late.

GBP/JPY  Video 07.03.19

Beyond that, the market is highly sensitive to global growth and trade deals, especially when we talk about the US/China situation right now, and that of course seems to be getting a bit better. With all that being the case, it’s likely that we will go higher over time. Granted, the ¥150 level is going to cause a lot of problems, but if we broke above that level it would be assigned that we are going to go much higher. Pullbacks at this point should still be thought of as value as long as we can hold at least the ¥145 level. Expect choppiness, but most certainly an upward bias.

Please let us know what you think in the comments below