GBP/JPY Price Forecast – British Pound Pulls Back From Major Figure

The British pound has pulled back a bit further during the trading session on Thursday, as we have continued the move from Wednesday. At this point in time, it looks as if the ¥140 level is going to be a hard barrier to break above there, so at this point in time it should not be a huge surprise that we pulled back from what had been an extremely overbought scenario. It would not be surprising at all to see this market drop a bit further, but at this point in time it is likely that we will continue to see buyers underneath. The 50 day EMA and under day EMA both sits at roughly ¥137, so that is an area where I think that we would see some type of interest, so it is possible that we could have buyers in that area.

GBP/JPY Video 13.11.20

Looking at this chart, one can make an argument for been overbought but I think this is a short-term situation. Ultimately, this is a market that I think will continue to be very noisy but have plenty of buyers underneath to take up some type of value play as the British pound will probably continue to move on not only the risk appetite of the world, but also the Brexit situation which of course is going to be all over the place. Looking at this chart, I think if you are patient enough you should have a decent opportunity to play what has been a decent break out as of late. However, when it comes to the British pound you have to worry about the latest headline or Tweet involving Brexit, so this can all be thrown right back in your face in a flash.

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