GBP/JPY Price Forecast – British pound pulls back ahead of boat

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Updated: Mar 12, 2019, 16:44 UTC

The British pound fell rather hard during the trading session on Tuesday, as we have a major vote in the UK parliament looming on Teresa May’s deal for the Brexit. Obviously, we are looking at a scenario where almost anything can happen, as headlines come out fast and furiously. However, when you look at the charts it suggests that there is a certain proclivity.

The British pound has pulled back rather drastically in early trading on Tuesday, as we await the UK parliamentary vote. That being the case, it looks as if there is still an underlying bullish pressure longer-term in this pair. Because of this, it’s likely that we will continue to see a “buy on the dips” mentality. That doesn’t mean that it’s going to be easy to hang onto a pro-British pound trade, but it certainly looks as if there are a lot of people out there interested in it.

GBP/JPY Video 13.03.19

Looking at this chart it’s easy to see that there is a lot of danger out there. At this point, we still have a major bullish flag that suggests that we are going to go to the ¥155 level above, based upon the pull from the flag. That doesn’t mean that the ¥150 level will be easy to get through, but once we do that should blow the top off of this market and send it much higher.

On the downside, if we were to break down below the ¥143 level, then the market goes down to the ¥140 level looking for some type of stability and support. Quite frankly, you should keep an eye on the headlines, and recognize that any type of deal coming out of the UK will probably send this pair much higher.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.