GBP/JPY Slides on Dismal UK PMI Data: Bearish Trend Targets 197.25

GBPJPY pared some of its gains after dismal UK PMI data.    The intraday trend is bearish as long as the resistance at 200 holds. It is currently trading around 199.282; the pair reached an intraday low of 199.19.

With the composite PMI plummeting dramatically to 51.9 from 53.5 in September 2025—a two-month low—the UK Flash PMI statistics showed a sharp economic deceleration. August is falling short of expectations and showing decreasing growth momentum. Falling short of expectations at 46.9, the Manufacturing PMI worsened from 47.0 to 46.2, extending contraction for the twelfth consecutive month in weak domestic and foreign demand. Meanwhile, the predominant Services PMI dropped from a 16-month high of 54.2 to 51.9, well below the projected 53.5, inching near to stagnation albeit still expanding. These depressing numbers intensify worries about the UK's recovery sustainability, so putting pressure on the British Pound and affecting the Bank of England's current policy. 4% rates, particularly right before the budget disclosure.

The pair is trading below  55, 200 EMA  and  365 EMA (long-term) on the 1-hour chart, confirming a bearish trend.  Any violation below 199 indicates the intraday trend is weak. A dip to 198.75 /198/197.85/197.25/ 196.70/196.20/195 is possible.  Immediate resistance is at 200 a breach above this level targets of 200.53/201.26/ 202/203.

Market Indicators ( 1-hour chart)

CCI (50)- Neutral

Directional movement index -  Neutral

Trading Strategy:  Sell

 It Is good to sell on rallies 199.48-50  with SL around 200.25 for a TP of 197.25.