GBP/JPY Forecast November 1, 2017, Technical Analysis

The British pound went sideways initially on Tuesday, but then shot through the 150 handle above. The market breaking above the 150 handle is a very good sign, and because of this I believe it’s only a matter of time before we rally again. I like buying pullbacks, and especially at signs of support. If we can break above the 150.50 level, that is reason enough to go long as well, sending this market to the 151.25 level above. Remember that this pair is highly sensitive to risk appetite, as stock markets rise, typically this pair rises as well. Ultimately, this is a market that should continue to be difficult, as there are extreme amounts of volatility in this pair more often than not. With this pair, I typically like buying or selling in small pieces, and then adding to the market as it moves in my favor.
I suspect that the 149-level underneath continues to be supportive, and a breakdown below there would be a very negative sign. That could breakdown the market to the 148 handle. In general, I believe in the uptrend, but I think that the 152.50 level will be massively resistive. A break above there then sends the market to the 155 handle. This pair does tend to move with the S&P 500 and the overall commodity markets, just as the yen will strengthen in times of fear and markets selling off. Based upon the recent explosion higher, and then the pullback it looks as if the 149 level is a bit of a “hard floor.” That level is massive in its implications, and therefore I think that the market will be paying quite a bit of attention to that level, so keep it on your radar.