GBP/JPY Price Forecast – British pound goes back and forth

The British pound went back and forth during the trading session on Thursday, testing the top of the descending triangle that we have been fluttering about for a couple of months now. At this point, it looks like we are ready to roll over, and a move below the ¥145 level looks very likely. If that happens, it opens the door to the ¥144 level next. That being said, the British pound is extremely sensitive to the Brexit headlines, which of course are all over the place. It is also very sensitive to global economic conditions so you should keep that in mind as well. With that being the case, this is going to be a very volatile move once it kicks off and we have to keep in mind that there is the alternate scenario. Perhaps things go well.

GBP/JPY  Video 03.05.19

If they do, expect a move above the ¥146 level which should get this market moving quite a bit faster to the upside. At that point, I would anticipate that a lot of momentum would suddenly kick in and we should go looking towards the ¥147 level rather quickly, perhaps followed by a move towards the ¥148 level justice quickly. This is a market that is going to continue to be very volatile and difficult to trade, so please keep that in mind. Proper position sizing and of course caution will be needed, but this could set up for something quite nice.

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