GBP/JPY Price Forecast – British pound grinding sideways

The British pound has gone back and forth during the trading session on Thursday, as we continue to dance around the ¥145 level. This is an area that has been important recently, so it’s not a huge surprise to see it cause some issues. In fact, if we can break above that we will have completely recovered from the major selloff that started back in the early part of December, something that the S&P 500 is struggling with right now. That being the case, pay attention to the overall risk appetite as it typically moves this market, but seems to be especially true now.

GBP/JPY  Video 22.02.19

Beyond that, we also have the Brexit of course which will have the influence you would expect on the market, as there is a lot of uncertainty. However, the British pound seems to have bottomed overall as we have seen players willing to come in and pick it up as of late. With this in mind, a break above the ¥146 level could be the “all clear” to continue going higher in this pair. I suspect that the flag itself just below should offer plenty of support, so although it isn’t going to be easy it’s very likely that we will see this market try it’s very best to continue to push to the upside and grind much higher. For what it’s worth, the flag measures for a move to the ¥155 roughly.

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