The British pound has rallied a bit during the trading session, showing signs of strength yet again. It looks as if we are trying to break out above the ¥143 level permanently, and at this point it’s interesting to see whether or not we can sustain this move. I do think it happens given enough time, but the election of course will have people a bit concerned. Eventually though, once that election is out of the way and if we get a Tory majority in parliament, that could send this market looking towards the ¥145 level, and then possibly even the ¥148.50 level based upon the measurement of the Fibonacci retracement’s and of course the top of the bullish flag.
GBP/JPY Video 11.12.19
Pullbacks at this point should continue to see plenty of support though, and quite frankly I would welcome that as an opportunity to “buy on the dips” as the market is so obviously bullish from a longer-term standpoint. Looking at the moving averages, the 50 day EMA crossed above the 200 day EMA a while ago, and at this point it looks likely that the “golden cross” could continue to drive money into this market, as longer-term “buy-and-hold” traders will continue to be attracted to it. Historically, we are at cheaper levels so it makes sense that we could be seeing the beginning of a major move higher. With that, I am bullish but I also recognize the potential of a pullback between now and the result on Thursday.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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