GBP/JPY Price Forecast – British pound show signs of life

The British pound rallied a bit during the trading session on Friday, bouncing from the support level of ¥144. This is an area that has been rather supportive for some time, so it would make sense for buyers to step in and defend the market. Overall though, this is a market that is very sensitive to risk appetite so you must keep that in mind. The ¥144 level has offered support several times, so if it does break down that could be a major turn of events. In the short term, it moved back towards the ¥145 level is very possible, and a break above that level will more than likely have this market trying to fulfill the previous consolidation, meaning that it could go as high as ¥147.

GBP/JPY  Video 29.04.19

As you can see, I have a bullish flag marked on the chart, and therefore still have the thesis of a move to the ¥155 level active, but clearly the action as of late has done no favors to that type of move. Beyond that, we also have to get above the ¥150 level to begin with. Quite frankly, this is a market that is going to be highly sensitive to what goes on in other markets, and of course it needs some type of solution to the Brexit to really get going. If we can get some type of resolution to that situation, I suspect that British pound will skyrocket against most currencies just simply because we have some sense of certainty finally. Until then, expect somewhat lackluster performance but we are at the bottom of an important range.

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