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

The British pound initially rallied during the trading session on Tuesday but gave back the gains to collapse towards the ¥155 level. At this point, I think that eventually the buyers will come back, but at this point in time we probably need to see a little bit of stabilization before you put any type of money to work. With this being the case, I am simply sitting on the sidelines and standing quietly waiting for an opportunity. The ¥153.50 level underneath should be supportive based upon the fact that we have seen such a massive pop last week.

GBP/JPY Video 02.06.21

If we were to break down below that level, then it is likely that we could go down towards the gap underneath, but right now it appears that the market is very much in an uptrend despite the fact that we have seen almost nothing to confirm that the last three days. Longer-term though, we have been going higher for quite some time so it does make a certain amount of sense that we would see buyers underneath just waiting to get involved.

Remember that this pair is highly sensitive to risk appetite, so you need to pay attention to what is going on around the world as well, as the market obviously does not work in a vacuum. Longer-term, I believe that this market goes looking towards the ¥160 level, but we may have a lot of noise in general to get through before we get to that area. With this being the case, I am sitting on my hands.

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