GBP/JPY Price Forecast – British Pound Pulls Back to Kick Off the Week

The British pound has rallied a bit during the trading session on Monday initially only to turn around and fall again. That being said, the market looks very likely to continue to see a lot of noise in general and therefore I think we will probably stay in this overall area for the short term. The 50 day and the 200 day EMA indicators underneath are flat and offering support. I believe at this point the moving averages will offer a bit of dynamic support.

GBP/JPY Video 13.10.20

If we can break above both the Friday and Monday highs, then the market is likely to go looking towards the ¥140 level, and therefore it is very likely that there would be a bigger push to the upside. The ¥140 level of course is a large, round, psychologically significant figure, and therefore it would not be a huge surprise to see a bit of resistance there. On the other hand, if we break down below the 200 day EMA, then the market is likely to see a move back down to the ¥136 level in the short term.

One thing is for sure, the most recent rally has been very strong and even though the British seem to be looking to do everything they can to shoot themselves in the foot as far as the economy is concerned, it appears that the market is still willing to buy the British pound overall. I look at this short-term pullback is just that, short-term until otherwise proven incorrect. I can give you 100 reasons why the British pound should go lower, but as you can see that has not mattered for quite some time.

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