GBP/JPY- Gains capped at 23.6% Fibo hurdle

GBP/JPY cross ticked higher in Asia, but is struggling to hold above 136.04 (23.6% of 160.12-128.60) levels.

Eyes UK PMI & BOE rate decision

GBP traders eye UK final manufacturing PMI release, which is seen confirming the post Brexit slowdown as highlighted by the preliminary figure released last month. Hence, Sterling may not react much unless there is downward or upward revision of the number.

Moreover, upticks are likely to see weak volumes as Bank of England (BOE) is widely seen reducing rates this week. In the meantime, broader market sentiment could influence the demand for Japanese Yen.

GBP/JPY Technical Levels

The cross was last seen trading around 135.88 levels. Acceptance above 136.04 (23.6% of 160.12-128.60) would expose 137.18 (5-DMA). On the other hand, a breakdown of support at 134.80 (Friday’s low) would open doors for a sell-off to 133.21 (June 24 low).