GBP/JPY Price Forecast January 9, 2018, Technical Analysis

The British pound fell significantly on Monday, testing the 153 level. That’s an area that was previous resistance, and should now be support based upon plastic technical analysis. If we can break to the upside, the market will more than likely go looking towards the 155 handle above, and then eventually the 160 level. I believe that the market continues to offer opportunities on pullbacks, as it shows the British pound as being “cheap.” I think that the market will react to the overall attitude of stock traders around the world, which seems to be positive in general, but we have a bit of a “risk off” attitude on Monday. I think this will be short-lived though, so look at this as an opportunity to pick up value.

It’s not until we break down below the 152 level that I would be a seller, and based upon the recent action over the last couple of hours as I record this, I think that the buyers are most certainly looking to step in. We need help from stock traders and commodity traders to help lift this market, but is in this things calm down, I think we will see a resumption of the recent trend. I saw the 153 level being broken as a major turn of events. At this point, we will find out whether that was true now that we are retesting the region. If we fail, that’s an extraordinarily negative sign.

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