GBP/JPY Price Forecast – British pound pulls back slightly

The British pound pulled back a bit during the trading session on Monday, as we continue to see a lot of resistance above the ¥148 level. At this point, the market has gotten a bit ahead of itself but quite frankly I think that the traders around the world are starting to put money towards the British pound in the idea that perhaps the Brexit will be delayed, or at least there might be some type of agreement coming soon. If that’s going to be the case, it’s very likely that we will see the British pound continues to grind higher.

GBP/JPY  Video 05.03.19

Overall, the market probably needs to cool off a little bit, just simply because we have the pound going far too high and too short of a time frame. I suspect that we may pull back a little bit to test the previous downtrend line for support, which I fully anticipate that we are going to see manifest itself. That should give us enough value to start getting in the market again, as I think the pullback will probably be an attempt to build up the necessary momentum to finally break out and above the ¥150 level.

When you look at the chart, you can see that the bullish flag has kicked off, and quite frankly the market measures for a move towards the ¥155 level, and that is my target. That doesn’t mean were to get there tomorrow, so this pullback makes a lot of sense.

Please let us know what you think in the comments below