GBP/JPY Weekly Price Forecast – British pound show strength for the week
The British pound rallied during the week, reaching towards the ¥145 level. We broke the top of a major bullish flag, so that of course is a very good sign. This is a market that looks like it has bottomed, although there is a lot of noise above that is going to continue to cause major issues. That being the case, expect pullbacks but longer-term traders will probably be looking to pick up dips as they should continue to offer value based upon what we have seen.
GBP/JPY Video 25.02.19
Keep in mind that the GBP/JPY pair is very sensitive to geopolitical and global growth issues, and that being the case it is likely that there are a lot of headlines out there that will continue to throw this market around. Obviously, the most obvious one will be the Brexit headlines, but we also have the US/China trade negotiations going on that will have a massive influence on global growth and risk appetite overall. That by extension will have a lot of influence on what happens in this market.
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At this point, I believe that the ¥140 level is going to act as a bit of a “floor” in this market, and that’s assuming that we even do get down there. At this point, it looks as if breaking above the ¥145 level is going to take a lot of effort, but once we do we could really start to take off to the upside although we do have a downtrend line to deal with as well. In other words, expect a lot of volatility but it does favor the upside at this point.
Please let us know what you think in the comments below