GBP/JPY Price Forecast – British pound pulls back slightly on Thursday

The British pound pulled back a bit during the trading session on Thursday, as we reached towards the ¥147 level. I do believe that this pullback could drift a bit lower, but I also recognize that there is a ton of support underneath. The ¥145 level is the beginning of massive support that extends down to the ¥144 level. I would anticipate the buyers would come back into the market near that level, at least until we would get some type of resolution to the Brexit. If the Brexit get solved, that should send this market much higher. In the meantime I believe we are simply killing time in waiting for some type of clarity.

GBP/JPY  Video 05.04.19

We had recently formed a major bullish flag, and the pole on that flag suggests that we could go as high as ¥155 once we pick up a bit of momentum. Obviously, we need to get above the ¥150 level before we get up there, as it is a massive barrier. It’s going to take a lot of work to get through that level, so pullbacks will probably be necessary in order to build up momentum. Quite frankly, I think we are stuck between ¥148.50 and ¥144 until we get some type of resolution to the entire Brexit situation. Until then, I still like buying dips that represent value but also am going to be relatively quick to take profits.

Please let us know what you think in the comments below