GBP/JPY Price Forecast – British Pound Gives Up Early Gains

The British pound rallied a bit during the trading session on Monday, clearing the ¥139 level. By showing signs of exhaustion it looks as if we started to factor in the idea that Brexit is still an absolute mess. Ultimately, I do think there is plenty of support underneath though so I am looking to buy on a pullback, not only in this pair but also in anything involving the British pound at this point as it seems like it cannot fall for any significant amount of time.

GBP/JPY Video 17.11.20

The 50 day EMA and the 200 day EMA are both underneath and could offer a certain amount of support as they do tend to attract attention. However, they are both flat, so it just shows you that overall, we do not have anywhere to be anytime soon. That is an area where we could see a lot of interest in the market, but quite frankly I think you are better off simply waiting for daily candlesticks to get involved. Because of this, I will look at this chart every 24 hours for some type of clue as to when it is time to start buying again.

I think that the market will more than likely try to retest the ¥140 level, but I do not have the supportive looking candlestick that I would like to see before putting money to work. All this being said, a little bit of patience will probably go a long way as we continue to see politicians trying to negotiate Brexit through the news, and of course social media. This causes chaos in the markets, so look for a supportive candlestick in order to find value.

For a look at all of today’s economic events, check out our economic calendar.