The course of the pound to yen began this week with increases. As you can see on the daily chart below, GBP/JPY quotations have found support on the trend line, which at the same time represents the lower boundary of the growth channel.
Yesterday, despite the slight turmoil over the next Brexit agreement vote in the House of Commons, the price of the pound remained in the formation of the channel. The buyers managed to defend their support at 144.80.
As long as the GBP/JPY price remains in the channel, quotations may be heading towards the last high ( 148.56) and the key horizontal resistance at 149.40.
However, we have yet another UK vote ahead of us, which may cause volatility in the pound. Their negative impact on the pound may lead to a breakthrough of the channel’s support. In this scenario, the sellers would open the way to another horizontal support around 141.50.
