GBP/JPY Price Forecast – British Pound Relatively FlatThe British pound has initially tried to rally during the trading session on Monday but has pulled back a bit to show signs of choppiness. Quite frankly, the British pound is going to be waiting on the elections.
The British pound initially tried to rally during the trading session on Monday but has found a lot of resistance above the ¥143 level to keep the market somewhat flat. All things being equal, the market has broken above the top of a flag, and that of course is a very bullish sign. Between now and Thursday it could be very choppy and difficult to trade for anything bigger than a short-term scalper due to the fact that the UK election is on Thursday. Once we get those results, then we probably have a longer-term move just waiting to happen. All things being equal, if the Tories take over Parliament with the majority, this would be a very bullish sign for the British pound as it gives us an opportunity to find a little bit of clarity when it comes to Brexit.
GBP/JPY Video 10.12.19
With this, I believe that pullbacks over the next couple of days will be bought up as people are looking for value, and quite frankly trying to get ahead of that election result. We have recently had the “golden cross”, when the 50 day EMA crosses above the 200 day EMA. This is a very bullish longer-term signal, and therefore a lot of people will be looked at that as an opportunity to start buying. Ultimately, this market probably goes looking towards the ¥149 level once this move kicks off fully. It’s not until we break down below the ¥139 level that I would be concerned about the uptrend that has been so strong over the last couple of months.
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