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Christopher Lewis
GBP/JPY daily chart, October 14, 2019

The British pound has shot higher during the trading session on Friday again as the Brexit negotiations supposedly are going well. However, Boris Johnson has already walked back expectations a bit, so if there is some type of negative and ugly surprise, this market could crater. If you are a longer-term trader, then it’s simply a matter of waiting for a pullback as we have gotten far ahead of ourselves in this move. 750 pips later and counting, this is a market that is far too expensive suddenly to buy. That doesn’t mean that you can’t go long, but you need to find some type of value.

GBP/JPY  Video 14.10.19

Beyond all of that, going into the weekend we could very well see a massive gap in one direction or the other, as traders come back to work next week. With that, be very cautious and unless you are already long of this pair, you are better off simply waiting for a pullback that offers value or selling the disappointment that could come back into the marketplace. If they do in fact get the deal done, then the bottom has been put in, and the market should continue to go much higher and possibly towards the ¥150 level, meaning that you should have plenty of time to take advantage of the longer-term trend on a pullback.

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