The Sterling took a bearish turn after the UK manufacturing new orders and employment fell for the first time since mid-2016. As per economist forecast, the manufacturing PMI was supposed to be 53, but the actual figure disappointed the market with 51.1.

For now, the investors wait for the UK inflation report as well as the Bank of England’s interest rate decision. Considering the manufacturing figure, the inflation report may suffer and we may see further bears in the pound.

Technically speaking, the GBP/JPY has violated a strong resistance level of 145 which opened further room for buying until 146.300. The closing of hourly candles below this level may offer us an opportunity to short the pair.

Support Resistance
143.14 144.31
142.6 144.93
141.43 146.1
Key Trading Level: 143.76

What’s Next?
I’m thinking of setting a sell limit below 146.300 with a stop above 146.650 to target 60 pips. So, let’s wait for BOE rate decision to sell at the top.

Good luck!