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

The British pound rallied significantly during the week, breaking above the candle stick from the previous week and reaching towards the ¥147 level. This is an area where you would expect to see some resistance, but quite frankly is very unlikely to be major. In fact, it looks as if we are probably going to go higher so pullbacks will more than likely be nice buying opportunities.
Christopher Lewis
GBP/JPY weekly chart, April 15, 2019

The British pound rallied significantly during the week, reaching towards the ¥147 level on Friday, in a very bullish move. The question now is whether or not we will get Brexit headlines to mess the move up? I’d almost be willing to count on it, but overall it looks as if the buyers are trying to push this market towards the ¥148.50 level, which extends resistance all the way to the ¥150 level. That’s an area that continues to be crucial, not only because it’s a large come around, psychologically significant number, but also because it is an area that has previously been important.

GBP/JPY  Video 15.04.19

Looking below, you can see that I have the bullish flag marked on the chart still, which suggests that we are going to go towards the ¥155 level. In order for that to happen we will probably need some type of resolution to the Brexit situation but we are clearly forming a lot of pressure underneath to push higher. At this point the only thing we need is some type of catalyst, which I think is coming relatively soon. When that finally comes, this market could be explosive. To the downside, if we were to break the ¥144 level, we would have to rethink the entire scenario. We would probably go looking towards the ¥140 level for support in that unlikely event.

Please let us know what you think in the comments below

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