GBP/JPY Price Forecast – British pound rallies significantly on Monday

The British pound has bounced significantly during the trading session on Monday, reaching towards the ¥145.50 level as I record this video. I believe that there is a significant amount of resistance at the ¥146 level as well, and I believe that we could see a bit of noise in that general vicinity. Because of this, I think that we are still looking at a somewhat range bound marketplace, but we do have signs of the bottom being formed near the ¥144.50 level. Longer-term, I think the British pound is due for a bounce overall, and that of course could translate into a higher rate over here as well.

Otherwise, if we turn around and break down below the ¥144.50 level, that would be a very negative sign and send this market down to the ¥144 level rather quickly, and perhaps even lower than that. If we can make a move above the ¥146.50 level, then we have a “W pattern” on the hourly chart, that signifies we should be going to the ¥148.50 level.

Obviously, as with most of the time, this pair is going to be driven by risk appetite globally more than anything else, so pay attention to stock markets and how they behave. The higher they go, typically the higher this pair will go. As money flows away from safety asset such as the Japanese yen, that of course as an effective over here as well.

GBP/JPY  Video 26.06.18