GBP/JPY Forecast June 8, 2017, Technical Analysis

The British pound initially fell during the day on Wednesday, testing the 140.60 level but bouncing hard to reach towards the 142 handle. We are starting to see the signs of resistance there, and as you can see marked on the hourly chart I have the 38.2% Fibonacci retracement there. , I think there is the possibility that we may get a bit of a selloff come in rather soon, especially considering that today is probably one of the most important day as for the British pound that we have seen since the election results to leave the European Union. Because of this, I believe this pair is going to be extraordinarily volatile, but things are starting to look as if we are getting overextended as I record this.
UK election results
In general, I think this is probably a pair that should be left alone, least until we get the results of the election. It is going to be a very volatile day, and as I look at the chart I can see that the 142 level should be important, and if we can break above there I think we would then go to the 50% Fibonacci retracement level at the 142.30 level. If we get favorable election results of the United Kingdom with the conservative party having some type of super majority, this should send the British pound much higher and we will probably break the 143 handle. In general, I believe that the British pound is a bit oversold, but between now and those results I think it’s difficult to imagine that people will be putting a lot of money to work. In other words, the short-term momentum should not be enough to push this market much higher in my estimation.