GBP/JPY Weekly Price Forecast – British Pound Slams into Big Figure

The British pound has rallied significantly during the course of the week, slamming into the ¥140 level. This is an area that is going to continue to be important from a psychological standpoint, but also has a lot of previous important more than once. Ultimately, this is a market that I think will break out to the upside and go looking towards the 200 week EMA and perhaps even the ¥145 level. This pair will of course react to risk appetite, so pay attention to various markets around the world that can give us an idea as to where it could go. One particular example would be the S&P 500 which is currently pressing the all-time highs, and of course whether or not other stock indices can continue to look strong.

GBP/JPY Video 17.08.20

Even if we do pull back from here, I believe that the 50 week EMA which is right around the ¥136.50 level could offer buying pressure, so therefore I like the idea of taking advantage of value as it occurs. It is not until the market breaks down below the ¥135 level that I would be concerned from a longer-term standpoint. I do believe that we go higher, and I do believe that this pair will continue to offer plenty of opportunities. Looking at this chart, we have been forming a basing pattern for quite some time and it is likely that we are going to see that come to fruition eventually. Currently, selling is an even a thought in this pair.

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