The British pound has initially pulled back during the trading session on Thursday but then rallied again to show signs of life again. At this point in time it looks as if it is continuing the flagging pattern that we have seen, as the market is trying to break out to the upside. Ultimately, this is a market that will see buyers jump in yet again above the ¥142 level. Pullbacks at this point continue to be supported, so it’s difficult to go short of this market for any length of time.
GBP/JPY Video 22.11.19
Based upon the flag, the market could very well end up reaching towards the ¥149 level, as it is the 100% Fibonacci retracement level and the pole on the flag does in fact measure for a move that far. Ultimately, the market could see a lot of bullish momentum in her based upon anything related to certainty involving Brexit, so as soon as we get it, I suspect that the British pound will see a lot of buying pressure come flying into the marketplace. This is also a market that is highly sensitive to risk appetite, so keep that in mind as well. If market suddenly is in a “risk on” attitude, it’s very likely that they will buy this pair as the Japanese yen get shorted.
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This article was originally posted on FX Empire
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