GBP JPY Weekly Price Forecast – British Pound Continues Sideways Trot

The British pound has rallied a bit during the trading week to break above the 50 week EMA before pulling back a bit. At this point time, the ¥138 level is going to continue to be resistance, as we continue to grind back and forth in a 300 point range between the ¥138 level and the ¥135 level. Because of this, I am not necessarily looking for anything big to happen in the short term, and quite frankly we need to get past the Brexit nonsense before we can get any real traction.

GBP/JPY Video 26.10.20

At this point in time, the market seems like it is building up for a bigger move that we are some way from that happening and therefore I think what we are probably going to see is a lot of choppy back-and-forth trading that is going to be difficult to deal with from a longer-term trading type of standpoint. Eventually we do break out of this 300 point range and move another 200 to 300 points higher or lower, but at this point there is not much to do for the longer-term trader as there are so many moving pieces that the noise will continue to be a major issue.

With that, I believe that you have to trade this on tighter timeframe such as the one hour chart or perhaps even the 15 minute chart if we get to the outer bounds of recent consolidation at these levels. Clarity is something that we simply do not have right now so now this should be a surprise.

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