The British pound fell initially during the trading session on Wednesday, reaching down towards the ¥147 level before bouncing. I think at this point we may make another go at the ¥150 level above, which is massive resistance and I think that it would take a lot of bullish and significant pressure. We would also need some type of major headline to come out, perhaps in the vein of the Brexit coming together, in order to have that market go to the upside.
I believe at this point, looking for signs of exhaustion will be the best way to start selling, probably closer to the ¥149 level. I would not be a buyer here, I would simply be patient enough to wait for that resistance to show itself. However, if we did break above the ¥150 level on a daily close, then I think the market probably goes looking towards ¥152.50 level, perhaps even the ¥155 level. I believe at this point the pair will eventually explode to the upside but we need the appropriate news. The other outline factor is the Chinese/American trade relations. If we can get some good signs out of that part of the world, it could be reason enough to send this market higher as well. In the meantime though, I’m looking to fade rallies.