GBP/JPY Price Forecast December 28, 2017, Technical Analysis

The British pound rallied significantly during the trading session on Wednesday, reaching towards the 152 level before pulling back slightly. I believe that the markets have a much more significant resistance barrier above at the 153 handle. That is a major breakout just waiting to happen, and if we clear the 153 handle, the market should then go to the 160 handle as it is the next large, round, psychologically significant number. I think pullbacks between now and then should be buying opportunities, as it offers value, and of course we have seen significant bullish pressure in this pair to the upside. I think that given enough time, the market should continue to see choppiness, but eventually buyers jumping into this market.

I believe that once we get into the new year, the buyers will come in, especially if the stock markets continue to rally as we have seen recently. I think that a general “risk on” attitude is coming back into the marketplace, and I think that the buyers should continue to find plenty of reasons to be involved. I think that the 150-handle underneath is massively supportive, and essentially the “floor” in the market, and if we can stay above that level, I look at this as a market that is trying to change the overall trend, and this is always a very noisy affair. This market is very sensitive to what happens in other financial markets, and if you keep that in mind you can profit quite nicely from what could be a supercharged move.

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