The GBP/JPY pared some of its gains after mixed UK PMI data. It hit an intraday high of 198.63 and is currently trading around 198.36. Intraday trend is bearish as long as the resistance at 200 holds.
The UK's Flash PMI results in July 2025 showed the manufacturing industry shrinking at a slowed rate, with the index reaching 48. 1—It's highest in many months, while the services sector kept consistent growth at 52. 8. Output, new orders, and employment decreased more slowly, pointing to some stability notwithstanding continuing worries over government policy, tariffs, and worldwide economic headwinds. At the same time, the services industry profited from strong local demand despite some pricing and job pressure. The findings point to growing but uneven momentum overall, with services outpacing the still-struggling manufacturing sector.
The GBP/JPY pair is trading below 55 and above 200 EMA (Short-term) and 365 EMA (long-term) on the 4-hour chart, confirming a mixed trend. Any violation below 198 indicates the intraday trend is weak. A dip to 197.70/197.40/196.70/196.25/195.25/194/193.70 is possible. Immediate resistance is at 199.20; a breach above this level targets 200/202/204.
Market Indicators (4-hour chart)
CCI (50)- Bearish
Directional movement index - Bearish
Trading Strategy: Sell
It is good to sell on rallies around 199 with SL around 200.10 for a TP of 196.70.


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