GBP/JPY Weekly Price Forecast – British Pound Continues to Hammer Same Resistance Barrier

The British pound has gone back and forth during the course of the week, reaching towards the ¥155 level, an area that has been psychological resistance and therefore it is worth paying close attention to it. Ultimately though, if we can break above the ¥155 level it opens up the possibility of the British pound moving much higher. Unfortunately, we do not seem to have that momentum quite yet and when you look at the British pound against the US dollar, it is in a similar fight with the 1.42 handle. If we can break out over there, then it can break out over here. Until then, I think we are probably under threat of a potential pullback.

GBP/JPY Video 24.05.21

That pullback looks like a buying opportunity to me, and I certainly have no interest whatsoever in shorting this market. At this point, I am doing one of two things: I am either buying a breakout above the ¥155 level on the daily chart or buying a pullback to somewhere near the ¥153 level. I have no interest in shorting this market, as we are most obviously in a very massive uptrend and only fools will try to step in front of this runaway train.

This does not mean that you just buy it and hold it, but we need one of those two scenarios to appear in order to get long. Until then, we simply wait for an opportunity to buy this pair as it should continue to find plenty of strength. It is not until we break down below the ¥148 level that I would even entertain the idea of shorting this pair. That does not look very likely to happen.

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