GBP/JPY Price Forecast – British Pound Reaches Towards Resistance Area
The British pound has rallied quite significantly during the trading session on Thursday to reach towards the ¥151 level, an area that has had a significant amount of selling pressure. The size of the candlestick is impressive, but at the end of the day it is very likely that we continue to see a lot of noise in this area, and more than likely a lot of selling pressure. That being said though, the ¥149 level has been an area where we had seen support multiple times, as we now have formed a recent “triple bottom” in that general vicinity. That being said, it also sets up for a nice selling opportunity if we get below there.
GBP/JPY Video 24.09.21
Notice how the most recent highs have all been lower as well, so all things being equal this is a descending triangle forming, and that of course is a very negative set up as well. Beyond that, when you look at the longer-term chart, you can see that the market has been forming a bit of a complex head and shoulders, and therefore we could see a lot of negativity coming soon. That being said, the market is likely to see a lot of volatility, as the pair is very sensitive to the risk appetite around the world, which of course is all over the place. All things been equal, I am still negative until we get above the ¥153 level, on a daily close. If that happens, then I think the market turns around and goes much higher. That being said though, it still looks very negative.
For a look at all of today’s economic events, check out our economic calendar.