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

The British pound has rallied significantly during the week, smashing through the top of a couple of shooting stars on the weekly timeframe. That of course is a very bullish sign but we also have a downtrend line above that we need to overcome. If we do, then the market is free to go much higher. I think at this point we are more than likely going to see a little bit of a pullback, but I would be looking for buyers somewhere near the 145 handle as it should be a large, round, psychological significance type of trade. Now that we have broken the top of those two shooting stars, a lot of sellers have been burnt, and I think that’s the reaction you will see once we get to the upside.

Ultimately, I don’t have any interest in selling this pair unless of course we get some type of major meltdown with the Brexit situation, and I think at this point most of the longer-term traders are starting to look at the British pound as being a value because the Brexit is very likely to be finalize relatively soon. Ultimately, that’s what’s needed, some type of certainty in the marketplace psyche when it comes to this deal. It doesn’t really even matter what the deal is, just that there is one. Once we break through this downtrend line, I think the market could go as high as ¥155 and probably much quicker than many people think as it would be a complete shift of attitude.

GBP/JPY  Video 17.09.18