GBP/JPY retreats from 5-month high, UK PMI in focus

Having jumped to its highest level since June 24, the GBP/JPY cross witnessed some profit-taking slide and has now retreated back below 143.00 mark.

Currently trading around 142.80-75 band, testing session lows, the cross seems to have faced rejection from the vicinity of 200-day SMA. As OPEC deal-led optimism seemed to be receding, an offered tone around the USD/JPY major, primarily driven by technical selling from near-term oversold conditions, has been an important factor contributing to the pair's retracement from over 5-month highs. 

Further downslide, however, might be limited as the cross might continue to attract fresh buying interest amid prevalent tepid recovery trend surrounding the GBP/USD major. Today's release of UK manufacturing PMI for the month of November will be in focus during European session, which might add on to the recent better-than-expected UK economic performance and point to resilience despite of the historic Brexit vote. 

Technical levels to watch

From current levels, 142.50-40 area seems to act as immediate support below which the cross is likely to extend the corrective slide even below 142.00 mark towards previous resistance, now turned support, near 141.50 region. On the upside, momentum back above 143.25-30 immediate resistance now seems to assist the cross towards the very important 200-day SMA resistance near 143.80 region.