GBP/JPY Price Forecast December 20, 2017, Technical Analysis

The British pound went sideways initially during the day on Tuesday, but then broke above to test the 151 level above. A break above that level should send this market towards the 152 handle, and then the vital 153 level. The 153 level is massively important, and if we can break above there I feel that the market will probably go into more of a “buy-and-hold” scenario, perhaps reaching towards the 155 level after that. Pullbacks at this point suggest that value is creeping back into the market, and as stock markets around the world rally, it should continue to push this market to the upside.

I believe that the 150 level could end up being a longer-term floor in the market, but it is still early days. I think that dips represent value, as long as we do not make a fresh, new low. Because of this, I think that the market will continue to be very volatile, but positive. If we were to break down to a fresh, new low, then of course I have to reevaluate everything, but we are a long way from doing that. As we approach the end of the week, liquidity will be a major issue, and therefore we could see sudden moves in this market, in various directions. This is a market that continues to be volatile, but that’s typical as it is so rest sensitive. Of course, you need to keep in mind that it works both ways so sudden moves could be an issue.

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