GBP/JPY Price Forecast – British Pound Continues to Hover at Same Level

The British pound has gone back and forth during the trading session on Wednesday as we continue to hover around the ¥155 level. At this point, the market looks as if it is starting to stall a bit, and at this point I think what we are going to see is a lot of questions in this general vicinity. Ultimately, the market has been bullish for very long time, but it is also worth noting that on the longer-term charts we do see a significant amount of resistance above, so I think this is going to be a serious fight over the next several weeks, if not months.

GBP/JPY Video 17.06.21

To the downside, I believe that the ¥153.50 level is an area of significant support, just as the ¥151.50 level is. I still believe that short-term pullbacks will be buying opportunities, as long as we do not have some type of major “risk off” type of event. That being said, we have a rocky couple of weeks ahead of us in my estimation, but I still believe that the buyers currently are pushing much harder than the sellers.

In general, I believe that this is a market that probably looks towards external factors to push it in one direction or the other, so pay attention to worldwide markets and the general feeling of traders out there as a bit of an external clue. As things stand right now, this still looks like it favors the upside, but it is obvious that we are having to chew through a lot of resistance to make that move happen for any real length of time at this point.

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