GBP/JPY Price Forecast – British Pound Crashes Into Major Resistance

The British pound rallied significantly during the course of the trading session on Wednesday to slam into the ¥145 level. That is a large, round, psychologically significant figure that people will pay close attention to, and if we can break above that level, it would be a major barrier cleared by the bullish traders. Nonetheless, when you look at this chart, you can see that the Monday candlestick formed a shooting star, the Tuesday candlestick formed a hammer that is fighting against it, and now the Wednesday candlestick is looking very likely to go higher.

GBP/JPY Video 11.02.21

Looking at this market, I believe that it is probably eventually going to break out, but it may be very noisy between now and then. Nonetheless, if we can break above the ¥145 level it is yet another major barrier that the British pound has jumped out and above. Short-term pullbacks will more than likely continue to be bought into yet again, as the British pound seems like a steamroller against most other things. In general, this is a market that has a lot of work to do, but it certainly seems as if it is only a matter of time. Nonetheless, the market could pull back is deep as ¥142.50 level, where it looks like there are plenty of buyers in that general vicinity, and of course the 50 day EMA is racing towards that level as well. All things being equal, this is a market that I think is trying to make a big move and quite frankly I have no interest in shorting and whatsoever.

[fx-forecasts-cta instrument=markets broker=etoro link=https://ad.doubleclick.net/ddm/clk/483417007;290243260;x disclaimer=75%_of_retail_CFD_investors_lose_money]

For a look at all of todays economic events, check out our economic calendar.

[fx-article-ad]