GBP/JPY Price Forecast December 14, 2017, Technical Analysis

The British pound went back and forth during the trading session, as we continue to see a lot of volatility. I believe that the 151.50 level above is resistance, but if we break above there, the market should continue to go towards the 153 level above, which is massive resistance. If we can break above there, the market should continue to go much higher, perhaps reaching towards the 155 handle over the longer term. In the meantime, I expect that the 150-handle underneath is massively supportive. The 150 handle being broken to the downside would be very negative, but right now it looks to me as if the market is trying to form a bit of a rounded bottom, building up support going forward. Pay attention to the risk appetite of the global markets, because if it goes higher in general, especially in stock markets, it’s likely that the market should continue to go much higher. This market is especially sensitive to all things Great Britain related, as we have seen a lot of headlines coming out of the negotiations between the EU and the UK that have moved the GBP in general.

I believe that eventually we will get some type of momentum to break out of this 300-point range, but in the meantime, I think that it is a general building pattern for the next move. Once we get the next move, I think it could be brutal and sudden. Because of this, caution will be needed but eventually this could be one of the best trades for 2018 as we have been beaten down for so long that one would have to think there’s a lot of inertia.

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