GBP/JPY Price Forecast February 23, 2018, Technical Analysis

The British pound fell a bit during the trading session on Thursday, reaching down towards the 148.50 level. This is an area that has been important in support in the past, so I think that the market will more than likely find interested parties in this area. That’s not to say that it will be easy to go higher, but I think that the so-called “smart money” is getting involved, and that could be a sign to start buying. However, I would not put a lot of money into this market right now, as I believe that the 150 level will be very difficult to crack, and more importantly, the 151 handle. If we do find enough momentum to break above there, that would be an extraordinarily bullish sign. However, if we break down below the 148 handle, I don’t see any reason we can’t go down to the 145 handle, probably coinciding with a bit of a “risk off” move overall.

At this point, I think the one thing you can count on is a lot of volatility and potential trouble. Because of that, whichever trade you take, you should probably use a small position initially, and then add as the trade goes in your favor, regardless of it being bullish or bearish. Longer-term, I do think that we bounce and go higher, but there are a lot of moving pieces in the world right now, so anything is possible as per usual.

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