GBP/JPY Weekly Price Forecast – British pound bounces slightly for the week

The British pound rallied a bit during the week, breaking above the ¥145 level. However we are still in the descending triangle, so it looks very likely that we are going to continue to bounce back and forth. If we can break down below the downtrend line, then we could go to the ¥147 level, and then possibly the ¥148 level. Overall though, even if we break above there I think we have a lot of work to do to finally clear the ¥150 level. In fact, I think that’s impossible until we get some type of Brexit announcement or solution.

GBP/JPY  Video 06.05.19

There is a bullish flag underneath that still is in play, that measures towards the ¥155 level. However, it’s not until we get some type of solution or at least signs that we are about to get a deal. If we do, then we could break to that vital level. However, as we have a descending triangle going on at the same time, I believe that rather soon we will get an impulsive weekly candle to show us which direction. If we break down below the ¥143.50 level, then I think it opens the door to the 140 young level underneath. At that point, I would get rid of the bullish flag and completely ignore it. In general, I think that we are going to continue to see a lot of noise in this market play.

Please let us know what you think in the comments below