GBP/JPY Price Forecast – consolidation continues in The Dragon

The British pound has gone back and forth during most of the trading session on Wednesday, as I record the video. It looks as if the ¥145 level is offering a bit of resistance, but we have broken through it by a few pips here and there. If we can get some type of positivity into the marketplace, we should continue to see this pair rise, perhaps going to the ¥146 level. Otherwise, I would anticipate a lot of back-and-forth consolidation in a pair that is highly sensitive to global headlines, and of course, risk appetite in general. Ultimately, I do think that this pair will break to the upside, because we have seen such a strong basing pattern over the last couple of days.

This of course assumes that there are no major geopolitical issues, which is something that you can’t necessarily count on these days. However, I think that it’s starting to dawn on most traders that the tariffs that the Americans and Chinese are imposing on each other so far are relatively minor, and perhaps even more or less being used as negotiating tactics.

Because of this, I think the market is going to turn around rather rapidly, and once it does it should take off to the upside quite strongly. Remember, when this pair changes its mind, it can do so quite suddenly. Short-term pullbacks at this point are supported down to at least the ¥144.25 level.

GBP/JPY  Video 21.06.18