GBP/JPY Price Forecast January 19, 2018, Technical Analysis

The British pound rallied a bit during the day, but then pulled back to test support again. I believe that the British pound continues to be very strong, and if stock markets can rally, this pair will as well. The 153 level being broken recently was a massive sign that we are going higher, so I look at this pair as one that’s going to go to the 155-handle level rather quickly. Ultimately, I think that we continue to find dips as opportunities to go long, and I have no interest in shorting this pair until we break below the 153 level underneath.

A break above the 100-5500 level is likely to send this market to the 160-handle longer-term, and I believe that the downtrend is now over. Because of this, I continue to add on small dips, and therefore I think that given enough time we should see the 160 handle not only tested, but broken. I believe that we are entering a longer-term uptrend in general when it comes to the British pound, so I think that it will be the same here. If we were to break down, then we would probably go looking towards the 150 level, but I currently believe that’s very unlikely to happen, and along with the GBP/USD long position that I have now, this is one of my favorite trades. If stock markets rally, that only adds more fuel to the fire, and they look as if they are ready to do so again.

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