GBP/JPY Weekly Price Forecast – British Pound Slams Into Familiar Resistance

The British pound has rallied significantly during the course of the week, to slam back into the previous resistance barrier. At this point, it looks as if the market is going to find some trouble in this area, and I think that a short-term pullback will more than likely present itself if we get any type of “risk off behavior” in the markets. Pulling back from there could reach down towards the ¥150 level underneath which is massive support. The market also has support extending all the way down to the ¥149 level, so you need to look at this as a big “zone of support.”

GBP/JPY Video 11.10.21

If we were to break above the ¥153 level, then I think this pair probably takes off towards the ¥155 level, but it seems as if every time we get close to the area we are now, the sellers come in and push this market to the downside. That being said, if we were to break down below the ¥149 level, then it is likely that we could go much lower, perhaps reaching towards the ¥145 level, and from there to the ¥140 level given enough time. That obviously would be a major negative move, so it will be interesting to see how that plays out if it does in fact happen.

I suspect that given enough time we will simply chop around until we get a little bit more confident in one direction or the other. As soon as we get the breakout or breakdown, then we can put money to work for a bigger move. As things stand right now, we are simply waiting, at least as far as the longer-term trade is concerned.

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