GBP/JPY Price Forecast – British pound rallies on Thursday

The British pound rallied during the trading session on Thursday, reaching towards the ¥137 level. I do recognize that there is a lot of resistance above here as well though, so the question now is whether or not we can hang onto it.
Christopher Lewis
GBP/JPY daily chart, June 28, 2019

The British pound rallied a bit during the trading session on Thursday, reaching towards the ¥137 level. There is a lot of resistance between here and the ¥138 level so it makes sense that we could run into resistance rather soon. That being said, keep in mind that this is a highly sensitive pair when it comes to risk appetite so with the G 20 coming up it’s going to be difficult to hang onto gains I believe. At this point, it’s going to take some type of major situation to change things drastically. Ultimately, a lot of people will be cautious, so a pullback makes quite a bit of sense.

GBP/JPY Video 28.06.19

To the downside, the ¥136 level is a nice target. I don’t know if we break down below there though, because there is always going to be a certain amount of hope out there. I don’t expect much in the way of a conclusion to the US/China trade situation, at least not anytime soon. As long as that is going to be the case, I believe that short-term rallies that show signs of exhaustion will continue to be selling opportunities. The technical signal to start buying is above the ¥138 level. If we can break above there, then the market probably goes looking towards the ¥140 level. We are in a downtrend, so obviously it is easier to sell than it is to buy this market. Beyond that whole US/China trade tensions situation, let’s not forget the Brexit.

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