GBP/JPY Weekly Price Forecast – British Pound Slams Into Major Figure

The British pound has shot straight up in the air over the last several weeks, and now finds itself near the ¥145 level. That is a major level of resistance as seen during the end of 2019, and of course the fact that it is a large, round, psychologically significant figure. We are a bit stretched at this point so it does make sense that the market might struggle, but that does not necessarily mean that it is in trouble. In fact, I believe that it is probably only a matter of time before the market pulls back only to find buyers yet again.

GBP/JPY Video 08.02.21

This pair is highly sensitive to risk appetite around the world, so pay attention to what is going on. This is not just about the British pound; it is about the overall global economic recovery. If it looks like it is “full steam ahead” for that, then this pair should do quite well. On the other hand, if we start to see fears coming back into the market about the slowdown, that will be negative for this pair. That being said, when I look to the daily charts, I recognize that the ¥142.50 level should be supportive, and it is worth noting that the 200 week EMA sits roughly at that spot as well. With that in mind, I believe that a pullback actually makes quite a bit of sense and would be attractive for those seeking value. We could break above the ¥145 level, but there is further resistance above that would have to be taken into account as well. I personally like buying pullbacks.

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