GBP/JPY Price Forecast December 15, 2017, Technical Analysis

The British pound initially rally during the session on Thursday, but turned around to show signs of weakness, reaching down towards the 151 handle. A breakdown below that level will have the British pound looking towards 150 below, and perhaps set up for a stronger move. I think if we can break above the 153 handle, then it becomes a longer-term “buy-and-hold” situation. I think that given enough time, we will do so, and then reach towards the 155 handle. A break above the 155 handle sends this market towards the 160 handle.

The volatility of course will continue, because there are a lot of concerns around the world when it comes to financial markets. This is a market that tends to be very volatile, so pay attention the stock markets around the world, as when they rise this pair tends to rally as well, but then again, when they fall that puts downward pressure as money goes running towards the Japanese yen. The volatility is one of the biggest issues with the market, so I think that using small position size is probably the best way to go. Having said that, if we break down below the 150 handle, I think we will see this market reach towards the 147.50 level rather quickly. Geopolitical concerns can also come into play, but let us not forget that the British are discussing leaving the European Union with the Europeans, and those headlines of course can jump into the fray and cause issues for the British pound itself.

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