GBP/JPY Price Forecast – British pound finding support on Tuesday

The British pound pulled back initially during trading on Tuesday, but has found support near the ¥141 level, which I believe extends down to the ¥140 level. With that being the case, it’s very likely that the market will continue to try to bounce from here, perhaps heading towards the 200 day EMA, pictured in black on the chart. I believe that the 140 young level underneath is going to be massive support so if we were to break down below that level it would change everything. We have seen a hard bounce and more importantly we have taken out a very negative candle stick from a couple of weeks ago that actually broke down below the bottom of the overall downtrend channel.

GBP/JPY  Video 23.01.19

The British pound has gotten a bit of a boost under the thought process that perhaps there will be a delay on the Brexit, and if that’s the case we will probably see the British pound continue to go higher for a while. The key here of course is “for a while.” I don’t think that we break above the ¥145 level, at least not very easily. The after this kind of rally, you will quite often see some type of exhaustive candle above to start shorting again. However, at this point I think it’s only a matter of time before we do get exhaustion, but right now it’s obvious that the attitude is quite bullish, so you cannot fight that.