GBP/JPY Price forecast for the week of November 27, 2017, Technical Analysis

The British pound went back and forth during the course of the week, as we continue to grind just above the 148 level, and just below the 150 handle. If we can break above the 150 handle and stay above there on a weekly close, then I think that the market could break out to the upside, with the 152.50 level offering resistance. However, if we pull back from here, I think there’s plenty of support to keep this market afloat. Ultimately, this is a market that is highly sensitive to risk appetite, so pay attention to stock markets and the like as they could give us an idea as to where we are going next. On the other hand, pay attention to the British pound, as it looks likely to continue to go higher against other currencies, and if it does there should be a knock-on effect over here.

If we were to break down though, the 145-level underneath will be support, and the market will more than likely find plenty of buyers in that area as it would offer some value. A breakdown below there should send this market to the 140-level next. In general, I think that the market should continue to go higher, but there are several scenarios that could send this market lower based upon risk appetite in general. A break out to the upside could send this market as high as 160, but it would need to coincide with the British pound breaking out against other currencies such as the US dollar and the Euro. Expect a lot of noise, and keep your position size reasonably small as it can keep you out of a lot of trouble and gives you the ability to add to a winning position.

GBP/JPY  Video 27.11.17