GBP/JPY Price Forecast – heading towards a major downtrend line

The British pound has rallied significantly during the trading session on Monday, the break out to a near-term high, and it looks as if it is going to go aiming towards the major downtrend line above. Because of this, I think that we are approaching a potential longer-term breakout, which makes sense as we are starting to see signs of life with the Brexit, and of course it seems as if the market place is starting understanding that the tariffs are just a fact of life now. Ultimately, I think that short-term pullbacks should be buying opportunities and it looks as if the ¥146 level is going to offer support. That doesn’t mean that it’s going to be easy to trade this pair or that it simply one that you buy every chance you get, just that and it certainly has more of an upward bias. If we can clear the ¥148 level, then I think the market will break out to a much larger move higher.

At this point, getting some type of deal with the Brexit will be the catalyst to finally break out in my estimation, or perhaps some type of an agreement between the Americans and the Chinese, something that doesn’t look likely in the short term. Expect volatile moves, but quite frankly I think the upside continues to be the best way. Start out small with position sizing to protect your account.

GBP/JPY  Video 18.09.18