GBP/JPY Price Forecast January 17, 2018, Technical Analysis

The British pound has fallen during the session on Tuesday, reaching down to the 152 level. This is an area that is important from not only a psychological standpoint, but a structural standpoint as well. We have bounced from there a couple of times, and it now looks as if we are going to go looking towards the 153 handle. A break above that level is very bullish and should send this market higher again. The British pound of course has been noisy as of late, but it looks likely that we are going to see a lot of buying pressure based upon value, and of course based upon the general attitude of traders around the world.

The better that stock markets in general do, the better that this pair does. Obviously, this works in both ways, so if we start you to sell off of risk appetite around the world, that will be bearish when it comes to this market. If we were to break down below the 152 handle, I think at that point we go looking towards the 150 handle. A break above the 153 level has the market first attacking the 153.50 level, and then going to 160 longer term. This is my longer-term outlook for this market, but I recognize that we have a lot of work to do to break out above what has been significant resistance as of late.

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