GBP/JPY Price Forecast – British pound recovers ahead of boat

The British pound rallied significantly during the trading session on Wednesday, reaching towards the ¥143 level. This is an area that I think is going to be important, as it was previous support. I believe that once we get the vote out the way, the British pound selling will continue overall. Yes, there could be a knee-jerk reaction of positivity that Teresa May survives, but at the end of the day it doesn’t solve anything. It just takes one more potential disaster out of the mix.

GBP/JPY  Video 13.12.18

At this point, there are plenty of reasons to think that the pair could go lower, basically due to trade concerns around the world and of course growth concerns, as this pair is sensitive to both of those. Ultimately, I think this is a market that will continue to be very difficult to stomach at times, but I still believe fading rallies will continue to be the way going forward. I have no interest in buying this pair until we either get an agreement between the United States and China when it comes to trading, and probably more importantly, some type of Brexit deal that we can sink our teeth into. Until then, rallies are to be faded, all the way up to the downtrend line that makes the top of the overall channel that we have been in. I believe that we will probably go looking towards the ¥140 level over the next couple of weeks.