GBP/JPY Price Forecast – British pound showing signs of life to end the week
The British pound has rallied a bit during the session on Friday to end the week, perhaps in a bit of short covering. Beyond that, I think that there are a lot of people that still look at the British pound is being historically cheap, and therefore willing to buy the currency when it dips like this. The market has certainly sold off as of late, and it certainly is “leaning” to the downside. However, the Friday session looks as if the buyers are coming back to try to pick things up.
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If we were to make a fresh, new low then I think the ¥145 level would be a given. A breakdown below that level sends the market back down to the ¥142.50 level. I think that the choppiness will continue as we get headlines involving the Brexit, but quite frankly it seems as if every time we freak out, people will come back in and pick this market up. I assume that still the pattern until proven incorrect, and therefore I look at dips as opportunities to buy this pair. Even though the technical picture is somewhat bearish at the moment, I still look for value and start buying when I get the opportunity. Ultimately, this is a market that I think is all about the Brexit and of course the Sino-American trade relations. Once we get some type of certainty out of the Brexit, I suspect that the British pound will probably take off for a longer-term trade.