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GBP/JPY Price Forecast – British pound rallies into resistance

The British pound shot higher during the trading session on Monday, showing signs of bullish pressure right off the bat, but also has run into resistance later in the day. At this point, it looks as if the market is trying to figure out whether or not it can break out.
Christopher Lewis
GBP/JPY daily chart, July 02, 2019

The British pound gapped higher during the trading session on Monday, went back and forth after that to cause a lot of volatility and choppiness. That being the case, the market looks as if it is try to break out but it needs clear the ¥138 level to be impressive enough to put money to work. To the downside, I see a significant amount of support, so it’s very likely that we are simply going to chop around this week as it will be rather quiet after the G 20 meeting in Japan, and now the market starts to focus on the employment figures out of the United States.

GBP/JPY  Video 02.07.19

At this point, it’s very likely that market participants are trying to figure out where risk appetite goes, and needless to say there are a lot of concerns and questions about that. Ultimately, if we can break above the ¥138 level, then we will go looking towards the ¥140 level above. That’s an area that has been rather important more than once, so I don’t know that we can break above there without some type of good news coming out of the Brexit, something that we been waiting for to happen for months now. To the downside, the ¥135 level looks very supportive, so if we were to break down below there it could change a lot of things. Until then, the market looks to be very sideways and indecisive. The one thing you can count on is choppiness.

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