GBP/JPY daily chart, October 18, 2016

GBP/JPY Forecast October 18, 2016, Technical Analysis

The GBP/JPY pair went back and forth during the day on Monday and formed a very tight and neutral candle. Because of this, I suspect that there is a massive amount of support just below, especially near the 125 level, which I see as the “floor” in the market. If we did break down below there, it’s likely that the market would fall rather rapidly, because I believe that this is a massive supportive barrier. Rally should offer selling opportunities on signs of exhaustion though, and I believe that the 130 level is the “ceiling” at this time.