GBPJPY seesaws around the 134 mark as the rebound from monthly low stalled at the 100-day moving average for the second straight day at the 200-day moving average. British pound managed to rebound from the monthly lows and earlier this week breached above the 50-day moving average and now the pair looking to higher levels.
UK Services PMI Beat Expectations
The UK Services Purchasing Managers’ Index (PMI) rose to 47.1 in June from 29.0 in May, topping the expectations of 47.0, but the figure is still below the 50 mark which points to growth. The UK composite PMI, which is a combination of services and manufacturing sector, rose to 47.7 in June, from 30.0 in May.
In Japan, the Services PMI came in at 45.0 in June 2020, compared with a flash reading of 42.3. That was the highest reading since February when the coronavirus spread in Japan.
GBPJPY Daily Technical Analysis
GBPJPY is 0.08% higher at 133.91, as the pair after the recent correction from June highs recaptures the positive momentum this week after a break above the 50-day moving average. The technical outlook is bearish in the long term but a break above the 100-day moving average in the upcoming trading sessions would cancel the negative momentum and might push the pair up to 135 mark.
On the downside, first support for GBPJPY is at 133.70 the daily low. Solid support would be met at 133.35 the 50-day moving average. A break below might be the beginning of a new leg higher targeting 131.96 the low from June 30.
On the other hand, immediate resistance for GBPJPY stands at 134.20 and 134.29 the daily top and the 100-day moving average, respectively. A break above would face the next hurdle at 135.21 the high from June 17. The next resistance would be met at 136.35 the high from June 16.