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GBP/JPY Price Forecast – British pound pulls back

Christopher Lewis

The British pound pulled back significantly during the trading session on Wednesday, as perhaps we continue to see a lot of concerns out of the United Kingdom, or perhaps it’s just a general “risk off” trade. With this being the case, I believe that we are entering a potential support level that can be traded. Ultimately, we will probably need to follow this pair on shorter time frames in order to pick up some type of bounce that we can take advantage of.

GBP/JPY  Video 21.03.19

Looking at smaller time frames, it’s likely that the ¥146 level could offer an opportunity to go long, and most certainly the ¥145 level will. With that, it’s very likely that we should see value hunters come back in, especially if we get more of a “risk on” move. However, if we break down below the ¥145 level, the market will probably drop down to the ¥144 level. Nonetheless, I do believe that this market is trying to build up the necessary momentum to finally break above the ¥150 level, and then reaching towards the ¥155 level based upon the bullish flag that sits underneath.

We have recently seen a “golden cross”, as the 50 day EMA has broken above the 200 day EMA. That obviously is a very bullish sign, for both longer-term and short-term traders. At this point in time it’s very likely that we will have plenty of value hunters underneath, so simply being patient should offer a nice buying opportunity. In general, I do like this pair but we have some work to do to finally break out.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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