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

The British pound exploded to the upside during the trading session on Thursday, breaking above the 153 handle. The 153 handle was previous resistance for the consolidation region, so by breaking above there it is a very bullish sign. I anticipate that the buyers will probably come back into this market as we pull back, given us an opportunity to reach towards the 155 handle above.

Remember, this pair has a lot of sensitivity to risk appetite, so pay attention to stock markets, because if they rally it’s very possible that this pair will rally right along with it. Ultimately, I believe that the 155 level above is massive resistance, and if we can break above there we can continue to go much higher which is my longer-term outlook.

I suspect that the 150-level underneath is the “floor” in the market, which should keep it going higher over the longer term. I think that the market breaking below there would be a complete collapse, and it should send this market much lower. However, that’s something that I give about a 10% chance to happen, so I’m looking to buy on the dips going forward, adding every time we pull back to gather value. Longer-term, I anticipate that we are going to the 163 level, based upon longer-term charts and previous consolidation on the weekly timeframe. However, it’s going to take a lot of momentum and work to get there obviously.

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