GBP/JPY Price Forecast – British pound shows resiliency on Monday

The British pound initially fell during trading on Monday but found enough support at the ¥142.50 level to bounce significantly. By doing so, it looks as if we will eventually take out the ¥143 level, an area that has been resistance. Once we do, the market should be free to go to the next major round figure, the ¥145 level. I think that given enough time we will certainly do that, especially considering that the stock markets around the world continue to show signs of strength, at least the major ones.

There are a couple of monkey wrenches that would be Sino-American relations breaking down a bit. If that’s the case, then that would of course reverse this entire trade, as it would allow fear to creep back into the marketplace, almost certainly throwing money at Japan in the process. The other possibility would be some type of negativity coming out when it comes to the Brexit, which of course is a major concern when it comes to the British pound. So barring any negativity coming out of the headlines, we should continue to see bullish pressure. However, the usual suspects would be the culprits if we were to break down. The ¥142.50 level should continue to offer support, but if we were to break down below that level, then the market could go as low as ¥142, perhaps even lower than that. Either way, I believe that the market truly wants to go higher, but it needs the headlines to be quite enough to do so.

GBP/JPY  Video 28.08.18