GBP/JPY back below 133.00

The pound came under renewed pressure following dovish comments from BoE McCafferty and disappointing UK economic data released during the European session.

GBP/JPY broke below 133.00 and fell to a low of 132.41 before finding support. The cross however, managed to hold above last week, post-BoE/NFP meeting low of 132.22. At time of writing, GBP/JPY is trading at 132.60, down 0.71% on the day.

On the data front, UK manufacturing output came in at -0.3% (vs -0.23% expected) in June, while trade balance deficit unexpectedly widened to £12.409B.

GBP/JPY levels to watch

In terms of technical levels, immediate supports are seen at 132.22 (Aug 5 low), 131.93 (Jul 7 high) and 130.12 (Jul 11 low). On the flip side, resistances line up at 133.68 (Aug 9 high), 134.00 (psychological level/Aug 8 high) and 134.91 (10-day SMA).