GBP/JPY Price Forecast – British Pound Trying to Break 140
The British pound continues to break above the ¥140 level, a magnet for the price, but it continues to find noise above there as well.
As I sit here and watch this pair, it has found the ¥140 level to be a bit of a magnet. Ultimately, I think this is a market that will continue to suffer at the hands of the latest rumor, Tweet, or whatever coming out of the United Kingdom as people are trying to price in the Apocalypse. I do understand that the United Kingdom is locking itself down but quite frankly it just depends on the day at this point in time as to whether or not we are focusing on the world after the vaccine, or if we are focusing on today. Unfortunately, this is the world we live in right now, so for newer traders I explicitly tell them to ignore the British pound and do not be bothered trading it.
GBP/JPY Video 07.01.2021
For those of us with a little bit more experience we recognize that the market is trying to break out to the upside, but it is going to be a very noisy and messy affair. The 50 day EMA underneath does offer a bit of support, but unfortunately when it comes to trading this pair you may have to have something like a 200 PIP stop to be comfortable. In other words, you have to keep your positions rather small. That being said, I do believe that this is the type of buildup that is suggesting we are going higher, and it should be noted that the British pound is historically cheap at these levels.
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