GBP/JPY Price Forecast – British Pound Quietly Positive

The British pound has gone back and forth during the course of the trading session on Monday, as we are simply treading water, trying to figure out where we are going next. It is worth noting that are in an uptrend longer term, but the most recent high was lower than the one before it so it will be interesting to see whether or not we can get some type of momentum. If you squint, you can make out the beginning of a symmetrical triangle, but more than anything else I see confusion.

GBP/JPY Video 06.07.21

When you look at the chart, you can see that the ¥152.50 level has been support and resistance multiple times and is a “middle line” between the 500 point increments that seemed to be so dominant in the past. That being said, this is a pair that is highly sensitive to risk appetite, and therefore you need to be cognizant of what is going on out in the other markets, because it is very rare to see this pair rally of stock markets are falling, as an example. Obviously, it works in both directions as the Japanese yen is considered to be a major safety currency.

All things been equal, this is a market that is a very choppy and confused, so what I believe we are going to be forced to do is be very cautious about position size, and look for some type of impulsive candlestick, something that we have not gotten much of as of late, and it is possible that we simply grind sideways for the remainder of the summer, at least until we get more clarity when it comes to the inflation picture worldwide.

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