GBP/JPY Price Forecast – British pound finding support

The British pound continues to be rather difficult to deal with at this time, but overall it looks as if the 61.8% Fibonacci retracement level should continue to offer support at the ¥138 level. That being said, I think that the market could bounce up here and perhaps go looking towards the ¥140 level it we get some type of bullish “risk on” type of situation. The pair of course is very sensitive to risk appetite so pay attention to that.

GBP/JPY  Video 31.05.19

If we do breakdown below the ¥137 level, we could probably go down to the ¥135 level at that point. This pair is oversold to say the least, so we get some good news out of the UK or the Brexit situation, then we can go looking towards that bounce. I don’t know the we can break above the ¥140 level in the short term, but if we did that would be a very bullish sign and we could continue to go much higher. All things being equal though I think you’re going to chop a row between 138 and 140 over the next several sessions.

With the financial markets being so erratic as of late, you need to be very cautious and keep a relatively small trade position on in this pair. Trust me, if this works out to the upside for a bigger move, even a small position can at a rather quickly.

Please let us know what you think in the comments below