The GBP/JPY currency pair trades weak despite mixed UK PMI data. It hit a low of 192.96 at the time of writing and is currently trading around 193.28. The Potential Reversal Zone (PRZ) is set at 200.20.
The UK Flash Manufacturing PMI for November 2024 is reported at 48.6, showing that the manufacturing sector is still contracting since any reading below 50 indicates a decline. This is a small improvement from last month's score of 48.3. However, the sector continues to face ongoing challenges.
The UK Flash Services PMI for November 2024 is reported at 50.0, indicating stagnation in the services sector. This is a significant drop from 52.0 in October and marks the first contraction in services output.
Technical Overview
The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a major uptrend. The immediate resistance level is at 193.60. If the price breaks this level, it could rise toward 194.15/195/196/196.25. Support is at 192.80 and if that fails, the price could drop to 191.75/190.
Indicator Analysis
The CCI and ADX indicators suggest a bearish trend.
Trading Recommendation:
Consider selling on rallies around 194.15-18 with SL around 195 and aim for a target price of 190.10.
