GBP/JPY Price Forecast February 16, 2018, Technical Analysis

The British pound has rally during trading on Thursday, slicing towards the 150 handle. If we can break above the 150 handle, we should see resistance running towards the 151 handle, so if we can get above there it’s likely that the market should continue to climb. This would be the market forming a bit of a base, and that of course is exactly what value hunters are looking for. Otherwise, we could roll over from here and go looking towards the 149-level underneath, which was the recent low over the last 24 hours. Beyond there, we have even more support at the 148 level.

Remember that the pair tends to be very risk sensitive, meaning that it rises with stock markets, but also falls with them as well. I believe we will eventually try to find some type of move to the upside, and when I look at this hourly chart, you can make an argument for an inverse head and shoulders. If we break above, it’s likely that we could go towards the 152-level based upon the shape of the head and shoulders.

That doesn’t mean that I’m ready to start buying now, I just recognize that there is potential for that. We have sold off rather drastically as of late, but when you look at the longer-term charts, we are still very much in an uptrend in channel. Because of this, I believe the buyers will come back eventually, the question is when?

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