GBP/JPY Weekly Price Forecast – British Pound Slamming Into Resistance

The British pound has rallied a bit during the trading week but continues to struggle at the ¥140 level. The ¥140 level is an area that has shown all lot of support and resistance in the past, thereby causing issues right now. With that being the case, it’s very likely that the market will continue to grind back and forth in this area. This makes quite a bit of sense, because the move higher had been rather strong, and then of course the market may have run out of a bit of momentum. At this point, the bullish flag that is being formed on the daily chart suggests that we are going to go higher, but we would need to get a daily close above the ¥141 level at the very least, or in this case breaking above the previous week high would be a trigger to start buying.

GBP/JPY  Video 04.11.19

As far as selling is concerned, a breakdown below the ¥138 level could send sellers back into this market, because this is an area that was previously supportive for the market so it makes sense that a pullback could happen. That being said, this market is being driven by Brexit headlines more than anything else, so simple technical analysis by itself isn’t going to cut it. Paid attention to those headlines and trading either in favor of the British pound door against it is the general premise right now, with an eye on various levels where the market could struggle. Unfortunately, this will remain very news driven.

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