GBP/JPY Price Forecast March 7, 2018, Technical Analysis

The British pound has initially pulled back during trading on Tuesday, but then shot straight up in the air towards the 148 handle. That’s an area that coincides with the uptrend line that had been so supportive over the last several weeks, so it makes sense that it has shown resistance. However, if we can break above the shooting star on the hourly chart, somewhere around the 148.15 level, I think that the market probably goes looking towards the 150 handle at that point. It should coincide with strong moves in the stock markets to the upside, and more of a “risk on” attitude. Remember, this pair tends to be one of the most sensitive to where risk appetite is going, so pay attention to the world in general when trading this market. Of course, it works both directions, so we start to get a fear-based trade, this pair sells off.

If we do break down below the 146.50 level, it would be a “lower low”, or a bit of a failed breakout attempt. At that point, I would anticipate a move back to the 145.50 level underneath which has been both support and resistance over the last several sessions. I think that the markets continue to be noisy, but it’s likely that we should get some type of impulsive move that we can follow over the next couple of sessions.

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