GBP/JPY dips to fresh lows near 135.20 on UK PMI

The cross in the GBP/JPY extended its retreat further into the European session, with the pound having met fresh supply following the release of worse-than expected UK manufacturing PMI report.

GBP/JPY weighed by fresh selling in cable

Currently, GBP/JPY now trades +0.30% higher at 135.30, having struck fresh session lows at 135.18 last minutes. Having stalled post-BOJ recovery at 136.27, the GBP/JPY cross continues to shed gains and now came under fresh selling pressure after the pound was pounded across the board, on the back of disappointing UK manufacturing sector activity report for July.

The final Purchasing Managers' Index (PMI) in the UK dropped to 48.2 points in July, as compared to a 49.1 reading booked in June. Markets had predicted a steady print at 49.1.

However, the downside remains cushioned in wake of a solid recovery staged by USD/JPY pair from 102 handle, with the major now consolidating in the green around 102.40 levels.

Looking ahead, with the UK data out of the way, markets now await the manufacturing data from the US lined up for release later today for fresh moves in the cross.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 136.27/36 (daily high/ R3), above which 137.37 (1h 100-SMA) would be tested. On the flip side, support is seen at 135 (round figure) that at 134.84 (Jul 29 low).