GBP/JPY Price Forecast – British Pound Shows Upward Pressure

The British pound has pulled back just a bit during the trading session on Monday only to turn around and form a slightly bullish looking reaction. At this point, the British pound probably continues to go much higher, but as New Year’s Day is on Wednesday, liquidity will be an issue.
Christopher Lewis
GBP/JPY Price Forecast - British Pound Shows Upward Pressure

The British pound has pulled back just a bit during the trading session on Monday, only to turn around and show signs of life again. By doing so, the market looks as if it is ready to continue the overall uptrend and given enough time the market could reach towards the highs. Overall though, the 50 day EMA underneath of course is going to offer a significant amount of support, and therefore it’s likely that pullbacks will continue to be attractive for value hunters. Unfortunately, with New Year’s Day coming on Wednesday, liquidity and validity of the move will be a major question.

GBP/JPY  Video 31.12.19

Because of this, you probably have a couple of days to make your trade, but it certainly looks as if it is a market that should be bought and not sold. The ¥139 level underneath should be the absolute “floor” in the market, so if we were to break down below there it’s very likely that the market goes looking towards the ¥135 level. Remember that this pair is highly sensitive to not only Brexit, but also risk appetite in general. The Japanese yen is of course considered to be a major “safety currency”, and as a result the pair will move in tandem. However, with Brexit going on we also have that added caveat, but currently it seems as if the British pound is going to continue to be supported based upon election results in the fact that we are getting closer to a complete resolution.

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