GBP/JPY Price Forecast – British pound stabilizes

The British pound has stabilized a bit during the trading session on Friday, as we have shown a proclivity to stabilize at the crucial ¥135 level. If that’s going to be the case, it’s likely that this pair will continue to try to form some type of base. The ¥135 level of course is psychologically important and significant, so keep that in mind. The marketplace has been carving out what looks to be the beginning of a rounded bottom, but it’s far too early to assume that. In the meantime you are probably better off to simply look at this chart as a short-term opportunity, and possibly a sign that we are trying to carve out a bottom.

GBP/JPY  Video 08.07.19

However, if we were to break down below the ¥135 level, the market probably drops down to the ¥135.50 level. Overall, this is a market that I think continues to make a lot of noise, as per usual. Keep in mind that there are a lot of questions as to where the markets are going, so with that in general you should keep the market trade small, as a sudden move to the downside could really get this thing falling. However, to the upside I see the ¥138 level as a major resistance. That is an area that has been resistive in the past, and I suspect it probably will continue to be in the future. A break above there really can get this thing going to the upside.

Please let us know what you think in the comments below