GBP/JPY Price Forecast – British Pound Shows Signs of Strength Again

The British pound initially pulled back during the trading session on Tuesday, but it seems as if the ¥139 level is going to continue to offer at least short-term support, and now that we have bounced like this, it is likely that we are going to try to get towards the ¥140 level again. It is a large, round, psychologically significant figure that people will be paying attention to, and therefore it makes a nice juicy target. The British pound is exploding against the US dollar so that causes a bit of pressure over here as well, so that is going to continue to help as well. Ultimately, the market looks as if it is destined to break above the ¥140 level, but it may take a couple of attempts.

GBP/JPY Video 19.08.20

If we were to turn around a break down below the bottom of the daily candlestick, then it could open up a move down towards the ¥138 level, but that would signify that perhaps there is a bit of fear out there, something that does not seem to be an issue at the moment. Furthermore, the British pound has been one of the favored instruments to get away from the US dollar, so if we can continue to get more of a “risk on” type of attitude, that should help translate into this pair going higher as well. All things being equal, we have recently retested previous resistance, and should now start to see support come back into play so that we can go a bit higher.

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