GBP/JPY Weekly Price Forecast – British Pound Pierces Resistance

The British pound has rallied significantly during the week, breaking above the resistance from the last couple of weeks, touching the 50 week EMA. At this point time, the market has pulled back from there to find some buyers around the ¥135 level. If we can break above the top of the weekly candlestick, then it is likely that the market goes looking towards the ¥140 level. I have no interest in shorting this pair regardless, at least not anytime soon.

Keep in mind that the market is going to be sensitive to the risk appetite out there, so pay attention to stock markets and the like to give you an idea as to how this pair may trade. I think at this point you are likely to see this pair go up or down right along with those assets, so keep in mind that the safety trade of buying the Japanese yen is taken into account.

GBP/JPY Video 27.07.20

The British pound of course continues to go higher overall, so I think that we will see this pair do the same thing. We have formed a nice base recently, so I think at this point there are a lot of people long of this pair already, and a lot of people are willing to jump in and join them at the first signs of some type of “risk on rally” in general. I do not have any interest in shorting this pair anytime soon, because quite frankly every time we have dipped recently, we have seen a lot of buying.

For a look at all of today’s economic events, check out our economic calendar.