GBP/JPY Weekly Price Forecast – British pound continues to chop

The British pound went back and forth during the course of the last several weeks, as we continue to range trade. The ¥140 level underneath is massive support, showing signs of resiliency after breaking above the top of the bullish flag that I have marked on the chart. At this point, the market measures for a move towards the ¥155 level.

GBP/JPY  Video 01.04.19

Overall, this is a market that I think continues to struggle with the ¥150 level above, but eventually we will have reasons to go higher. I suspect that it is likely that the Brexit solution will eventually push this market much higher. The ¥155 level is of course an area that has shown quite a bit of resistance, an area that will probably cause a lot of resistance again. However, it makes a nice-looking target although it’s going to take quite a bit of time to get up there. Overall, if we break down below the ¥144 level then I would be concerned about the bullish flag and whether or not it has collapsed. If that’s the case, then we probably go down to the 140 young level underneath which would be massive in its importance.

Keep in mind that the market is very risk sensitive, and of course sensitive to the whole Brexit situation. Overall, this is a market that I think is trying to build up the momentum to go higher but we are going to have sudden and violent pullbacks. With that in mind it’s likely that you need to keep your position size small.

Please let us know what you think in the comments below