GBP/JPY Price Forecast March 1, 2018, Technical Analysis

The British pound has fallen rather hard during the trading session on Wednesday, as we have broken towards the 148 level, and have even gone below there. We are hovering just below that level as I record this, so if we bounce from here I think the market may have saved itself. Otherwise, if we break down below the 147.50 level, I think the market will break down significantly, perhaps down to the 145-handle next. That’s an area that has a lot of psychological importance attached to it, as well as structural.

The marketplace is going to be very noisy, but for those of you who have traded this currency pair more than once, you should know this by now. I think that if we break above the 148 handle on a daily close, we might get an opportunity to run back towards the 150 level, which I see as massively resistive. Otherwise, I think will break down and go looking towards the 145 level where I think that traders may reenter the market. Keep in mind that the risk appetite has a lot to do with what this pair does also, so if stock markets rally significantly, I think that the market here will also rally as it gives a bit of a “risk on” attitude for most currency traders. I think that market participants will continue to be very skittish though, bailing at the first signs of trouble. Ultimately, if we can finally break above the 151 handle, we can continue the longer-term uptrend.

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