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GBP/JPY Price Forecast – British Pound Reaching Towards Resistance Again

By:
Christopher Lewis
Published: Sep 27, 2021, 13:50 UTC

The British pound as rallied significantly during the course of the trading session on Monday again, to reach towards the structurally important ¥152.50 level.

GBP/JPY Price Forecast – British Pound Reaching Towards Resistance Again

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The British pound has rallied during the course of the trading session on Monday to reach towards the ¥152.50 level, an area that has been massive resistance in the past. Because of this, I think it will be interesting to see how this plays out over the next couple of days, but we are certainly in an area where we have seen a lot of selling pressure. If we break down below the bottom of the trading session on Monday, then it is likely that we will continue to go much lower, perhaps reaching down towards the ¥150 level. Underneath there, then we have an obvious support region that extends down to the ¥149 level.

GBP/JPY Video 28.09.21

If we can somehow break through all of that, that could open up the “trapdoor” in this market, making it fall like a stone. On the other hand, if we were to turn around and break above the ¥153 level, then I think it allows the market to go looking towards the ¥155 level. Looking at this chart, which would take a significant amount of effort, but it is very possible that it could happen.

The Japanese yen is being sold off against the greenback, which of course is its measure of relative strength, so if there is one place that we could see a currency beat up on the yen, it is probably here as the British pound has been rather resilient. With all of this being said, I believe the next couple of days are going to be choppy to say the least, but they may be pivotal as to where we go for the next couple of weeks. With that being the case, I am more than willing to sit and watch.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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