GBP/JPY Price Forecast – British Pound Gaps Lower to Kick Off the Week

The British pound has gapped lower to kick off the week and reach down towards the ¥150 level. We have bounced from there to fill that gap, and now we have some work to do to determine where we go next. The ¥150 level should be an area that attracts a lot of attention, so the question now is whether or not it will end up being supportive? Looking at this point, the market is likely to continue to see a move towards the ¥152.50 level, an area where we have seen selling pressure in the past. If we can break above there, then the market just simply continues the overall uptrend.

GBP/JPY Video 23.03.21

On the other hand, if we were to break down below the ¥150 level, then it is likely that we would see a move down to the ¥147.50 level. That is an area that I think would also make a nice support level, as the 50 day EMA is starting to reach towards that area. With that being the case, I think it is only a matter of time before you could be a buyer, but I think you need to see a little bit more in the way of reliability. I think that the trend is far from being broken, but it is worth noting that the gap lower is a potential sign of trouble. Always pay attention to risk appetite in general, as it is a major driver of where this pair goes so it typically will move right along with stock indices around the world.

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