Currency pair Pound Yen GBP/JPY ends the trading week near the level of 153.29. The pair continues to move within the rally and the bullish channel. A “Head and Shoulders” reversal pattern is also forming here. Moving averages indicate a bullish trend. Prices have broken the area between the signal lines upward, which indicates pressure from buyers of the currency and a potential continuation of the growth of the instrument. At the moment, we should expect an attempt to continue price growth and test the resistance area near the level of 154.45. Further, a rebound down and an attempt to continue the fall of the pair with a potential target below the level of 141.15.
GBP/JPY Weekly Forecast December 27 — 31, 2021
An additional signal in favor of the fall of the Pound Yen currency pair will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the GBP/JPY reduction option will be a strong growth and a breakdown of the 158.35 area. This will indicate a breakdown of the resistance area and continued growth of the pair on Forex with a target above the 161.45 area. Confirmation of the fall of the pair in the current trading week December 27 — 31, 2021 will be a breakdown of the support area and closing of quotations below 148.65, which will indicate the beginning of the development of the “Head and Shoulders” reversal pattern.
GBP/JPY Weekly Forecast December 27 — 31, 2021 therefore suggests an attempt to test the resistance level near the 154.45 area. Then, the continuation of the fall in GBP/JPY to the area below the level of 141.15. A test of the trend line on the relative strength index (RSI) will be in favor of the decline. Cancellation of the GBP/JPY fall option will be a breakdown of the resistance area and closing of quotations above the level of 158.35. This will indicate a continued rise in the pair with a potential target above the level of 161.45.
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