GBP/JPY Price Forecast – British pound recovers on Tuesday

The British pound pulled back initially during trading on Tuesday but recovered a bit as we reached towards the 200 day EMA. If we can break above the 200 EMA, then the next target would be the ¥145 level. That of course offers a lot of resistance, and I believe that if we can break above there the market will more than likely go towards the top of the channel. Ultimately, the British pound is being lifted by the possibility of a softer Brexit than once thought. However, I think that the situation is still much fluid, so headlines will crossed the wires that could move this market. I think at this point, we are a bit overbought so I still think that we probably need to pullback to build up the necessary momentum to go higher or perhaps even to break out.

GBP/JPY  Video 30.01.19

I believe that the 50 day EMA, pictured in red on the chart, it should offer significant amount of support, and I do think that the level will catch the market’s attention. Obviously, we get a lot of headlines out there that spoof the machines, and therefore we get a lot of volatility occasionally. At this point though, it looks as if the market is trying to figure out whether or not it can actually break the ¥145 level. Expect a lot of choppiness ahead of the vote, but the UK parliament will of course cause headlines by voting on aspects of the Brexit. On the other side of the English Channel, the European Union claims it will not renegotiate terms.