GBP/JPY Price Forecast – British Pound Pulls Back From Resistance Again

The British pound has initially tried to rally during the course of the trading session on Wednesday but then gave back the gains to show signs of hesitancy yet again. At this point, I think it is only a matter of time before we do reach to the upside but really at this point in time, I think there is a lot of work to do. We could pull back all the way down to the ¥152.50 level, where we had seen the most recent move to the upside.

GBP/JPY Video 27.05.21

All things been equal, I do think that this is a market that will eventually find buyers and of course eventually break above that ¥155 level. If and when we do, then it is likely that we will see a lot of noise in the short term but eventually an explosive move towards the ¥160 level eventually. Ultimately, I think what we are looking at is a scenario where we are simply trying to build up the significant amount of momentum needed to break out above a major spot on the chart. Nonetheless, we are very much in an uptrend and that of course is the case in the British pound against most currencies, so I think it is only a matter of time.

In fact, it is not until we break down below the ¥150 level that I would be concerned about this market, and at that point in time I would have to take a serious look at the overall picture, perhaps trying to get a read on the larger fundamental picture for not only the United Kingdom but also Japan.

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