GBP/JPY Price Forecast – British Pound Continues to Hover at High Levels

The British pound has initially tried to rally just a bit during the trading session on Friday but gave back gains as we continue to hang about the ¥157 level. This is a market that has gone parabolic so it will be interesting to see whether or not we can continue to make this type of move. Sooner or later, momentum will run out and we will get a pullback. Quite frankly, if you are bullish of this pair, you desperately needs some type of pullback to offer value that you can take advantage of. Chasing the trade all the way up here is a great way to lose money, but you can use this chart for an indicator if nothing else. In other words, what I am suggesting is that you can take a look at the Japanese yen across-the-board and perhaps buy something else against it.

GBP/JPY Video 10.01.22

To the downside, the ¥155 level is going to continue to be a potential support level, so I would most clearly pay close attention to that area if we do pull back. That being said, if we give up the ¥155 level, then we very well could find this as a situation like the last time we went parabolic, we just simply fell right back down to the ¥150 level. The question now is not so much as to whether or not you should be shorting yet, but whether or not we are simply carving out a huge range based upon the last couple of parabolic spikes? Alternately, if we do break above the ¥158.50 level, this market will go absolutely stratospheric at that point.

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