GBP/JPY tumbles below 139.00 handle after disappointing PMI numbers

Selling pressure around the British Pound seems to have intensified in the last hour of trading, with the GBP/JPY cross now extending its slide further below 140.00 psychological mark to currently trade just above 139.00 round figure mark.

The latest UK PMI prints, released on Friday, showed sharp contraction in the overall business activity in both the manufacturing and services sector. A significant slowdown in the UK economic activity now reaffirms market views that the Bank of England will come-up with some additional stimulus measure at their August policy meeting, which sent the British Pound spiraling lower across the board.

Earlier on Friday, the pair got a minor boost to 141.00 level on rumored talks of additional fiscal stimulus package by the Japanese government that has being weighing on the Japanese currency lately. The pair, however, failed to build on to its early momentum and has now erased some of its minor gains to move back to weekly opening level.

Technical levels to watch

From currently levels, 138.50 region weekly trading range support seems to protect immediate downside, below which the pair seems drop back below 135.00 psychological mark with intermediate support near 137.00 round figure mark.

On the flip side, the pair needs to reclaim 141.00 handle in order to enhance the possibilities of further recovery in the near-term. On a sustained move back above 141.00 handle, the pair seems all set to extend its near-term recovery trend towards 50-day SMA resistance near 148.00 handle in the near-term. Post-Brexit recovery swing high near 143.00 level seems to provide some intermediate resistance.