The British pound shot higher during the trading session on Wednesday, as polls continue to push the British pound higher. After all, it looks as if we are in fact going to get a conservative Parliament, and if that’s the case we may be able to go through with Brexit finally. If that’s going to be the case then the British pound is most certainly going to be thought of as being historically “cheap”, which means that it will go higher. By breaking above the 142 young level, that is a very bullish sign and it’s likely that we will continue to go looking towards the next large, round, psychologically significant figure at the ¥145 level.
GBP/JPY Video 05.12.19
Unfortunately, this is assuming that nobody out there says something stupid. That seems to be in short supply these days, so we may get sudden turnarounds, so make sure that your stop loss is most certainly set. There continues to be a lot of noise when it comes to not only Brexit but the US/China trade deal, and therefore we can suddenly get a major “risk off” type of move at any given moment. With this being the case, I believe that buying on the dips can work, and it’s possible that the ¥139 level is now going to be the bottom of what should be a massive support level at the ¥140 level. Expect a lot of noisy trading but I do think there is more of an upward proclivity at this point in time.
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This article was originally posted on FX Empire
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