GBP/JPY Price Forecast – British pound shows resiliency

The British pound initially dipped during the trading session on Wednesday, but then turned around to show signs of life again. I think that the market is looking to consolidate a bit here, and if we can stay in this overall range, that would be a good sign. Obviously, we could use some help in the form of good news coming out of Great Britain, or more likely: good news coming out of the stock markets. I believe that the market should continue to be one that offers buying opportunities on pullbacks, but obviously this pair tends to be very noisy.

If we were to break down below the ¥142.50 level, then I think perhaps we could run into a little bit longer term selling pressure. Nonetheless, I do like the idea of buying dips until that happens. If that happens, then I would “reset” and look for a buying opportunity at lower levels such as the ¥142 level, and most certainly the 140 young level, which obviously would be a significant blow against the bullish case. Overall, I think that the market is trying to get to the ¥145 level, but with the noise coming out of the Brexit it might take a while to get to that level. However, the usual “risk on” correlation still remains firm in this market, so as stock markets have been so strong as of late, I suspect that there is still a natural proclivity to be positive in this market.

GBP/JPY  Video 30.08.18