GBP/JPY daily chart, October 13, 2016

GBP/JPY Forecast October 13, 2016, Technical Analysis

The GBP/JPY pair rallied during the course of the day on Wednesday, showing a significant amount of support near the 127 level. However, even though I think that the market might rally from here I think that the 130 level above is going to be massively resistive, and as a result it’s difficult to imagine a scenario in which short-term rallies to offer selling opportunities on signs of exhaustion. With that, I remain bearish but recognize that it will more than likely have to stand on the sidelines in the short-term as we get this bounce.