GBP/JPY Price Forecast – British Pound Continues to Grind Sideways

The British pound has gone back and forth during the trading session on Wednesday, as it looks like we are simply bouncing around the ¥138 level, trying to figure out where we go next. This was an area where we had seen resistance previously, so the fact that it is offering support should not be a huge surprise. Ultimately, you should also keep in mind that the British pound seems to have nine lives, so therefore there is no way to work against it anyway. Ultimately, this is a currency pair that is trying to test the same area time and time again, and therefore it is obvious that we are trying to build things up to make a bigger move.

GBP/JPY Video 19.11.20

Looking at this chart, the 50 day EMA could be support as well, so I do favor the upside, because the British pound seems to be willing to ignore the fact that Brexit is still a mess, and of course that the United Kingdom is shutting itself down. With that being the case, you simply have to “embrace the stupidity”, which is a statement that I have had to repeat to myself more than once over the last several months. With that being the case, it is likely that we continue to see buyers come in every time it dips and therefore you have to think of it that way. The ¥140 level above continues to be an area of resistance, and an area that the market probably is trying to get to again.

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