GBP/JPY Price Forecast – British Pound Testing Major Resistance Barrier

The British pound has rallied significantly during the course of the trading session on Thursday to reach towards the ¥155 level. This is an area that obviously is significant and important, so I am very interested in paying attention to it. If we can get a daily close above there, then it is likely that the market is probably going to go looking towards the ¥157.50 level, and then possibly the ¥160 level after that.

GBP/JPY Video 28.05.21

In the short term, I believe that the ¥153.50 level could come back into the picture as massive support, so a pullback to that area would not be a huge surprise. In this general outlook, I believe that there would be more of a “buy on the dip” type of situation. Because of this, I am waiting for some type of confirmation on the daily chart to get involved but certainly have no interest in selling this market. Because of this, I will review this at the end of the week can see where to go, but it certainly looks as if we are getting close to a major breakout. Once we do, this is a market that could pick up momentum rather quickly.

If we were to break down below the ¥152.50 level, then the next major support level is at the psychologically important and significant ¥150 area, which I think would attract quite a bit of value hunters as well. It is not until we break down below that level that I would consider shorting, and even then, I do not know how aggressive I would be about it.

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