The British pound when sideways after initially falling during the day on Wednesday, hovering around the ¥147.25 level. The market has been very bullish as of late, and when you look at the hourly chart you can see we have been in a nice uptrend for several sessions. That doesn’t mean there isn’t the occasional pullback, but quite frankly this point I look at those pullbacks as potential buying opportunities and what should be an overall slight uptrend. I don’t think that we are going to explode to the upside, nor do I think we are going to break down massively as there is a major uptrend line underneath that has been pierced once but has pulled its weight for the most part.
With fears of trade war escalations, it makes sense that this market has struggled a little bit, but at the end of the day I believe that we will eventually look through all of that and go much higher as market participants continue to look upon the trade war as a sideshow to a larger negotiation plan. With that being the case, it’s likely that we will continue to see a lot of headaches when it comes this marketplace, but ultimately I think it’s only a matter of time before we reach to higher levels, perhaps looking towards the ¥148 level, and then eventually the ¥150 level, barring some type of major meltdown to risk appetite around the world.
GBP/JPY Video 12.07.18
This article was originally posted on FX Empire
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