GBP/JPY Price Forecast November 8

The British pound has rallied a bit during the trading session again on Wednesday, but we are a bit overextended. I anticipate that the ¥150 level is massive resistance, and that it will be very difficult to break through. Once we do though, this pair could really take off to the upside. My base case scenario doesn’t go with that though, because quite frankly there are so many concerns about the Brexit going forward and of course the occasional rumor that I think this market will almost certainly retrace a bit. Overextended runs like this do tend to bring in sellers, because there are a seemingly unending amount of reasons to think that the British pound may suffer.

GBP/JPY  Video 08.11.18

That being said, if we can finally get some type of Brexit deal, I suspect that this market will go higher. Pay attention to global stock markets, because if we start to see some type of rollover and risk appetite, that will send this market much lower. If we do pull back from there, the ¥147.50 level is the initial support level, and then eventually the ¥145 level after that which of course is a major level. I think the one thing you can probably count on is a lot of volatility, but that’s nothing new in this pair. We have been very volatile since the vote to leave the European Union, and until we get some type of clarity, this pair will continue to be difficult.