GBP/JPY Price Forecast – British Pound Rises Slightly

The British pound has rallied a bit during the trading session on Tuesday to break above the ¥138 level. Ultimately, this is a market that continues to see a lot of noise above, and therefore I am not as convinced that we are going to go straight up in the air. That being said, the market is likely to see a lot of noise above, but it should be noticed that we continue to see significant attempts to try to go higher. That being said, the pair is likely to see a lot of volatility based upon the fact that risk appetite is all over the place.

GBP/JPY Video 18.11.20

Looking at this chart, even if we do break down, I think there are multiple areas where we could see a bit of support. The 50 day EMA underneath is just now crossing above the 200 day EMA, and that suggests that we are trying to pick up momentum, but at this point in time it is likely that traders will continue to simply look at it as another possible support level there. At this point in time, the market is likely to see plenty of noisy trading regardless, but to the upside the market will more than likely find resistance at the ¥140 level, which is a large, round, psychologically significant figure and an area where we have seen resistance previously.

Because of this, I think it all ties up quite nicely for a move to the upside. Ultimately, this is a scenario that sees a market breaking out, pulling back to find support, and then trying to rally. However, I expect a lot of noise so I would like to see some type of supportive candlestick on a daily chart or the like in order to go into the market. Regardless, I have no interest in shorting this market.

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