GBP/JPY Forecast November 2, 2017, Technical Analysis

The British pound initially rally during the day on Wednesday, reaching towards the 152 level. However, a lot of selling pressure was found there, and we rolled over to the 151 level to wipe out most of the gains. At the same time, the NASDAQ 100 has started to form a very similar type of daily candle, in the form of a shooting star. Because of this, we may be seeing the market go into more of a “risk off” mode, and I think a move below the 150.85 level could signify that. It’s not that I’m wanting to sell this market, I believe that there is a buying opportunity just waiting to happen below. Because of that, I’m waiting to see an impulsive move to the upside after a test of support to go long again. The 150 level should be massively supportive, and essentially signify that we are still in an uptrend. If we can stay above there, there’s no reason to short this market from what I see.
It’s not until we break down below the 149.25 level that I would be a seller. We have made a fresh, new high, so I think it’s only a matter of time before the buyers get involved. At this point, it’s likely that the best place to be in this market is on the sidelines. That allows you to wait for a better buying opportunity, as the British pound continues to be one that I like buying, but I need to find value. I think that the market will continue to chop around, but a fresh, new high signifies that there is more bullish pressure than bearish overall. I don’t think that changes, not even with the rollover that we have seen during the Wednesday session.